Price rises and strong sales of closed-toe clogs helped the shoe maker Birkenstock beat profit expectations as it became the latest beneficiary of the “ugly shoe summer”.
The German sandal maker said sales rose 16% in the three months to the end of June, if currency fluctuations were excluded. The average price of its products sold rose by about 5% and the number of items sold rose by about 8%.
There was demand for its suede leather closed-toe Boston clogs, which sell for as much as £250 and generally cost more than the brand’s more well-known sandals, which are priced from £105 for a leather version.
Total sales at the company, which listed on the US stock market in October 2023 valued at $7.5bn (£5.5bn), rose 12% to €635m (£546m) in the quarter with net profit up 73% to €129m.
This summer there has been an upturn in popularity of quirky footwear, from rubber flip-flops to glove-like fitness shoes that fit each individual toe.
However, the “ugly” footwear brand Crocs last week reported a 30% slump in sales amid new competition from split-toe shoes to flip-flops and Birkenstock’s clogs, which come in plastic as well as leather.
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.
The company makes 95% of its shoes at its own factories in Germany. Its chief executive, Oliver Reichert, said it was “well-positioned to manage the impact” of new US import tariffs of 15% on goods imported from the EU.
He said the higher costs would be managed through a combination of “pricing adjustment, cost discipline and inventory management to protect the long-term health and profitability of the Birkenstock brand”.
Reichert said that the company was on track to achieve full-year sales growth at the top end of expectations of 15% to 17%.
