Birkenstock Ditches the Hippie Vibes And Goes Full Hypebeast With Record Sales (Share’s Skyrocket)

Birkenstock just reminded everyone that they’re not just the footwear of choice for kombucha-brewing aunts and yoga instructors. Nope, the German shoemaker has officially entered its glow-up era, and the numbers prove they’re playing in a much bigger league than they are used to. 

(Source: Giphy) 

In short, the company's fourth-quarter results dropped this week, and they were about as jaw-dropping as seeing your dad in a pair of Birks for the first time. Revenue clocked in at $478.2 million, absolutely stomping over Wall Street’s $458 million estimate. Profits? A respectable $55.1 million, leaving the expected $50.3 million in the dust. Naturally, the stock responded like a hiker in their trusty Arizonas—up 5% in premarket trading and closing the day up 7%.

(Source: Investopedia) 

Now what’s interesting here is that Birkenstock’s recent success isn’t just about their iconic two-strap sandals anymore. The company has leaned hard into closed-toe styles like clogs and orthopedic shoes, which now make up a third of their business. Why is this such a big deal? Because closed-toe shoes scream multi-season wear. Unlike sandals—which are great until you’re trudging through yellow slush—these styles are year-round money-makers.

Susannah Streeter from Hargreaves Lansdown summed it up best, saying the pivot to closed-toe silhouettes has “boosted revenue.” And it’s not just about selling more shoes—it’s about selling more expensive shoes. Average selling prices jumped 8% in fiscal 2024, driven by higher clog sales. Birkenstock has cracked the formula: make cozy, stylish shoes that people can’t resist, slap on a higher price tag, and watch the cash roll in (or so it seems).

(Source: Giphy) 

Of course, it’s not all happy-go-lucky here. Birkenstock’s gross margin dipped 640 basis points, landing at 59.0% for fiscal 2024. The culprit? Investments in ramping up production capacity and the growing share of wholesale revenue, which isn’t exactly the profit machine that direct-to-consumer sales are.

But here’s the thing—Birkenstock isn’t sweating it. They’re playing the long game. With new production facilities coming online, margins are expected to rebound in fiscal 2025, inching closer to the company’s long-term goal of 60% gross margins. It’s a classic “spend now, reap the benefits later” strategy, and honestly, it’s hard to argue with the logic.

(Source: Schaeffers Research) 

Now with that said, despite the margin dip, Birkenstock’s bottom line is still looking pretty healthy. Adjusted EBITDA for the quarter jumped 31% to $131.2 million, with a margin of 27.4%. Operating cash flow? A cool $450.6 million, up from $377.5 million last year. Oh, and they’re sitting on $372.9 million in cash, proving they’re just as good at managing money as they are at designing footwear that somehow lands on everyone’s friggin 'wish list.

Looking ahead, Birkenstock is forecasting fiscal 2025 revenue growth of 15% to 17%, which is just slightly below Wall Street’s 17.5% estimate. But let’s call it what it is: classic underpromise, overdeliver. As BMO Capital Markets analyst Simeon Siegel pointed out, this “conservative approach” is likely setting the company up for another round of expectations-beating headlines.

(Source: Market Insider) 

Plus, let’s not forget the company is also doubling down on its retail footprint, planning to add 20 new stores this year, bringing the total to 67. And it’s not just about brick-and-mortar. Growth is happening across all regions: 21% in the Americas, 19% in Europe, and a jaw-dropping 38% in APMA (Asia-Pacific, Middle East, and Africa). 

Meaning, all this to say, Birkenstock is proving they’re not just surviving in the ultra-competitive footwear market—they’re thriving. The brand’s ability to balance tradition (hello, sandals) with innovation (shoutout to those clogs and closed-toe styles) is paying off. Add in a zesty mix of DTC and wholesale revenue growth, and you’ve got a company that’s not just coasting on its reputation—it’s actively rewriting its future.

(Source: Giphy) 

Now again, there are challenges in the wake. Expanding production capacity has been expensive, and margins took a hit this year. But the long-term vision is crystal clear: mid-to-high teens revenue growth, gross profit margins around 60%, and adjusted EBITDA margins over 30%.

In the end, only time will tell if they get there or not, but the company definitely has momentum behind it. Obviously, do what you will with this information, but please place your bets accordingly and do your due diligence to see if this Birkenstock fits well in your portfolio (if you’re feeling FOMO that is). In the meantime, stay safe, stay frosty, and have one helluva Friday, friends! Until next time…

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Stocks.News does not hold positions in companies mentioned in the article.