Birkenstock has missed its quarterly profit estimates despite achieving the highest sales in its history thanks to a strong uptick in sales of its Clogs models.
The shoemaker said sales of its “closed-toe silhouettes”, which include its clunky clogs, rose by more than twice the average for its products.
Total sales for the group, which listed on the US stock market last year with a $8.3bn valuation, rose 19% to £475m (€565m) in the three months to 30 June, boosted by store expansion in Asia.
Related Story
Despite the record sales, Birkenstock missed its quarterly profit expectations as its global expansion drive and production ramp-up hit margins.
The retailer has spent £42m (€50m) so far this year on its efforts as it looks to double production capacity in the next few years to help it grow rapidly in countries like China.
Birkenstock chief executive Oliver Reichert said the brand was benefiting as shoppers were becoming “increasingly selective and more intentional in their spending” as tight budgets limit spending on 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.
Click here to sign up to Retail Gazette‘s free daily email newsletter
