Birkenstock UK profits fall despite jump in revenues
According to the retailer, โadministrative expensesโ that added up to more than ยฃ4.4m led operating profits to drop from ยฃ962,506 to ยฃ743,632
Birkenstock has revealed that its profits fell 12% to ยฃ3.9m in the sandal brandโs UK division for the year to 30 September 2022, despite its revenue surging 49% to ยฃ34.5m.ย
While the retailerโs wholesale revenues increased 40% from ยฃ21.2m to ยฃ30m in 2022 โ representing 87% of the companyโs total revenue โ Birkenstockโs EBITDA decreased to ยฃ822k from ยฃ1.2m in 2021.ย ย
According to the retailer, โadministrative expensesโ that added up to more than ยฃ4.4m led to operating profits dropping from ยฃ962,506 to ยฃ743,632.ย
However, full-year retail revenues still more than doubled, growing 139% year-on-year to ยฃ4.5m in the year. During this period, retail represented 13% of the groupโs total revenue.ย
Nonetheless, Birkenstock UK maintains that it has coped well with inflationary pressures and the cost-of-living crisis.ย
Throughout the current 2022/23 financial year, the retailer revealed that it has been trading above its expected guidance. It also expects the number of shoes, and thus the sales revenues, to continue to increase.