Birkenstock Holding Plc aims to generate double-digit growth in revenue and earnings-per-share through 2028 as the German sandal maker offers its first strategy update since floating in 2023.
The company hopes to generate €1 billion ($1.2 billion) in incremental revenue over the next three fiscal years based on an average annual growth of as much as 15 percent on a constant-currency basis, according to slides published ahead of an investor event in New York City on Wednesday.
The expansion would include a doubling of the business in the Asia-Pacific region, while the Americas and EMEA regions would see double-digit growth, the company said. Birkenstock previously said that revenue in its current fiscal year could reach €2.35 billion.
Shares of Birkenstock rose as much as 5.8 percent in early New York trading. The stock has fallen about 35 percent in the past year.
Chief executive officer Oliver Reichert has been trying to win over investors with his slow-but-steady approach to growth, making sure that consumer demand for Birkenstock’s footwear always exceeds its production. Until now, that’s allowed the company to steadily raise the average selling price of its shoes and avoid markdowns.
With its own network of factories in Germany, Birkenstock has more control over its production and distribution than most footwear brands, who rely on partners in Asia to manufacture their products. Birkenstock has also benefited from its embrace of the fashion world, marketing an array of high-end sandals and clogs, often designed in collaborations with the likes of Rick Owens and Dior.
The company will increasingly focus on pulling in young customers and building more personalised options through membership programs and events, it said. Birkenstock also plans to open dozens more company-owned stores around the world and put its products in some new retail partners, including in the sports and outdoor space.
The updated strategy comes as Reichert has drawn criticism for not giving enough information on Birkenstock’s performance and expectations. That’s one reason the stock has recently traded below its 2023 initial public offering price of $46, despite strong growth and profitability.
Birkenstock’s mid-term sales ambition laid out on Wednesday appears to exceed the €3.05-billion average of analyst estimates for 2028, according to data compiled by Bloomberg.
While Birkenstock is publicly traded in New York, private equity firm L Catterton continues to own more than half of the outstanding shares, according to data compiled by Bloomberg. Reichert himself is the second-biggest holder, the data show. Birkenstock has said it plans to repurchase $200 million in stock during the 2026 fiscal year, subject to market conditions.
By Tim Loh
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