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Birkenstock Raises Annual Revenue Forecast on Strong Footwear Demand

A Birkenstock shoe shop is pictured in Dortmund August 27, 2013. REUTERS/Ina Fassbender (GERMANY - Tags: SOCIETY)/File Photo
A Birkenstock shoe shop is pictured in Dortmund August 27, 2013. REUTERS/Ina Fassbender (GERMANY - Tags: SOCIETY)/File Photo
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Birkenstock Raises Annual Revenue Forecast on Strong Footwear Demand

A Birkenstock shoe shop is pictured in Dortmund August 27, 2013. REUTERS/Ina Fassbender (GERMANY - Tags: SOCIETY)/File Photo
A Birkenstock shoe shop is pictured in Dortmund August 27, 2013. REUTERS/Ina Fassbender (GERMANY - Tags: SOCIETY)/File Photo

Birkenstock raised its annual revenue forecast on Thursday, as the German sandal maker bets on benefits from full-price selling and strong demand for its closed-toe silhouettes and cork-based sandals.
Wholesale retailers are still stocking up on in-demand products like Birkenstock despite a wider effort to cut back on inventory due to waning demand for discretionary items such as footwear.
Demand for Birkenstock's sandals and shoes made of cork also got a boost from Margot Robbie donning a pair of pink Birkens in the movie "Barbie" last year.
The company now expects fiscal 2024 revenue between 1.77 billion euros ($1.91 billion) and 1.78 billion euros, compared with its prior forecast of 1.74 billion euros to 1.76 billion euros.
Birkenstock reported quarterly revenue of 481.2 million euros, compared with market expectations of 466.1 million euros, according to LSEG data.

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Hermes 2Q Sales Rise 13% on Continued Appetite for High-End Luxury

People stand with Hermes shopping bags as they wait at a traffic light in Tsim Sha Tsui, a bustling shopping hotspot, in Hong Kong, China December 5, 2023. (Reuters)
People stand with Hermes shopping bags as they wait at a traffic light in Tsim Sha Tsui, a bustling shopping hotspot, in Hong Kong, China December 5, 2023. (Reuters)
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Hermes 2Q Sales Rise 13% on Continued Appetite for High-End Luxury

People stand with Hermes shopping bags as they wait at a traffic light in Tsim Sha Tsui, a bustling shopping hotspot, in Hong Kong, China December 5, 2023. (Reuters)
People stand with Hermes shopping bags as they wait at a traffic light in Tsim Sha Tsui, a bustling shopping hotspot, in Hong Kong, China December 5, 2023. (Reuters)

Birkin-bag maker Hermes reported a 13% rise in second-quarter sales on Thursday, demonstrating the continued appetite from wealthy shoppers for its luxury handbags, even as less affluent consumers pull back.

Sales at the French luxury group grew to 3.7 billion euros ($4.02 billion), a 13% organic sales rise that strips out currency fluctuations. The figure was in line with analyst expectations, according to a Visible Alpha consensus.

Operating profit for the first half was 3.1 billion euros, compared to a forecast from consensus provider Visible Alpha for 3.2 billion.

One of the most steady performers in the luxury goods sector -- even as economic conditions worsen -- the French group's results stand out after a string of disappointing earnings updates from peers which have raised investor concern about uncertain prospects for the sector in the coming months.

Hermes' famously classic designs and tight management of production and stock have helped reinforce the label's aura of exclusivity, and CEO Axel Dumas told reporters the company had seen "no big interruption in trends".

However, he said Hermes was seeing slightly less traffic with aspirational clients, which was impacting higher volume products like fashion accessories.