By Sanskriti Shekhar
Aug 13 (Reuters) – Birkenstock raised its full-year sales growth forecast and beat quarterly revenue estimates on Thursday, banking on resilient full-price demand for its premium sandals from affluent shoppers, sending its shares up about 12% premarket.
Strong pricing power and brand loyalty have helped companies such as Birkenstock that cater to wealthier consumers remain largely insulated from a wider pullback in U.S. discretionary spending affecting much of the apparel and footwear sector.
Demand for the company’s high-end sandals, clogs and closed-toe shoes has remained resilient for the quarter, while its expanding direct-to-consumer (DTC) business and retail footprint have helped drive growth across regions.
DTC sales, or sales made via its own stores and website, rose 14% and accounted for nearly 39% of quarterly revenue.
The strategy mirrors a broader push across the footwear industry to sell directly to shoppers, a channel that generally offers higher margins and less reliance on promotional activity.
Hoka-owner Deckers Outdoor also raised its annual earnings forecast in July, citing growth in its DTC business for helping it gain market share.
“Birkenstock is an incredibly well known brand but it’s far from the largest brand, and they are capitalizing on their whitespace runway in a measured fashion, consistently suggesting their demand outstrips their available supply,” Simeon A. Siegel, analyst at Guggenheim Securities, said.
The Middle East conflict’s impact on the quarter was more contained than initially anticipated, Birkenstock said.
Sales in Asia-Pacific increased 18% on a reported basis during the quarter, while the Americas grew 11% and EMEA rose 15%.
Birkenstock now expects fiscal year 2026 revenue growth of 15% on a constant currency basis, compared with its earlier forecast of a 13% to 15% rise. It maintained its annual profit forecast of 1.90 euros to 2.05 euros per share.
Third-quarter revenue rose 13% to 719.5 million euros ($829.1 million), topping analysts’ average estimate of 713.4 million euros, according to data compiled by LSEG. Adjusted earnings per share came in at 0.74 euro, below estimates of 0.76 euro.
($1 = 0.8678 euros)
(Reporting by Sanskriti Shekhar in Bengaluru; Editing by Mrigank Dhaniwala and Devika Syamnath)
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