Strong sales of clogs – which have been adopted by the American models Gigi Hadid and Kendall Jenner as part of this summer’s trend for “ugly” shoes – have helped Birkenstock to the highest quarterly sales in its history.
The German shoemaker, which listed on the US stock market in October last year valued at $7.5bn, said sales of “closed-toe silhouettes”, which include its clunky clogs, rose by more than twice the average for its products.
Total sales for the group rose 19% to €565m in the three months to 30 June, also boosted by expansion in Asia, where the group opened four new directly owned shops, including three in India, bringing the total to 23.
Known for its cork-lined sandals, Birkenstock pledged to make its offering more varied, with more clogs, trainers, shoes and boots when it launched on the stock market.
Oliver Reichert, the chief executive of Birkenstock, said the brand was benefiting as shoppers were becoming “increasingly selective and more intentional in their spending” as tight budgets limit spending to must-have products.
“We achieved the highest quarterly revenue in our history, driven by unbreakable and growing demand across all segments, channels and categories,” he said.
Birkenstocks, Crocs, Hoka, Asics and On Running have all benefited from this summer’s trend for so-called ugly shoes, kicked off by the hunt for comfort during the pandemic. The rise in working from home and shift towards more casual dressing as well a shift to buying better-quality items that will last longer than one season have also helped the brands.
Almost three-quarters of Birkenstock’s customers are female, and the brand is benefiting from a change in mindset among young women who no longer see high heels and delicate footwear as the feminine ideal.
However, its sandals and clogs are in competition with a plethora of rivals from chunky hiking sandals to high street lookalikes.
Despite the strong sales performance, shares in the group fell more than 14% on Thursday, unwinding some of a big surge this year, as analysts said a reduction in profit margins was bigger than expected. The company said this was down to the cost of global expansion and increased production. It has a market value of about $9.5bn.
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Susannah Streeter at Hargreaves Lansdown said: “Investors had become used to the sandal-maker’s prowess in defying the broader slowdown in footwear sales, with its styles taking off in the fashion stakes. But it seems it’s no longer immune to cost of living headwinds swirling around the retail sector and its sales weren’t quite as high as forecast.”
She said some of the “Barbie bounce” – after Margot Robbie’s version of the toy sported Birkenstock sandals in the 2023 film – “may also have dissipated and clearly some shoppers are becoming more cautious”.
