Birkenstock’s profits are rising as Gen Z’s ‘ugly shoe trend’ continues
German sandal maker Birkenstock posted higher sales and profits as ‘ugly’ clogs prove to be a hit with shoppers.
Turnover rose 21 per cent to £1.5 billion in the year to September 30 and profits more than doubled to £159 million.
Business was helped by strong demand for closed-toe shoes. Famous fans of the £150 suede ‘Boston’ shoes include Kendall Jenner and Katie Holmes.
This follows high demand for the sandals featured in the 2023 Barbie movie starring Margot Robbie.
Clogmania: Famous fans of Birkenstock’s £150 suede ‘Boston’ shoes include Kendall Jenner and Katie Holmes
“The Barbie boom may be gone, but with a long line of A-list celebrities stepping out in Birkenstocks, followers are snapping up pairs,” says Susannah Streeter, head of money and markets at Hargreaves Lansdown.
The popularity of clogs is fueled by an “ugly shoe trend” that “shows little sign of fading” among Gen Z shoppers, she added.
It marks the 250-year-old shoemaker’s first full financial year as a listed company.
It listed on the New York Stock Exchange with a valuation of £7 billion.
Shares rose almost 5 percent yesterday, adding to a gain of almost two-thirds since October 2023.
CEO Oliver Reichert said: “I am proud to report very strong results for 2024.”
In floating, it promised to boost profits in underdeveloped categories, including closed-toe shoes and orthopedic shoes.
Birkenstock is majority owned by private equity firm L Catterton, which is backed by Dior owner LVMH.
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