Birkenstock’s Premium Focus, Less Discounts Than Power Sales By Reuters

© Reuters. File photo: Logo outside a Birkenstock shoe store in Paris, France, January 21, 2021. REUTERS/Benoit Tessier/File Photo

(Reuters) – Birkenstock on Thursday said its 2024 sales would beat estimates after beating analysts’ expectations for fourth-quarter sales on higher prices and strong demand, the German luxury sandal maker’s first results since its listing showed. It was predicted that

The company’s sandals and clogs sell for $350 a pair, and the positive results come as global demand for luxury has declined and there have been signs of weak sales expectations. Nike (NYSE:) and JD (NASDAQ:) sports fashion.

Birkenstock’s (NYSE:) investment is boosting sales, primarily in the U.S., as the company capitalizes on the post-pandemic shift from formal to more casual and informal clothing.

Sales in the Americas rose 30% to €187.24 million in the quarter, and Birkenstock said China and India were also key growth drivers for fiscal 2023.

The company’s quarterly revenue rose to 374.54 million euros ($477 million) from 321.61 million euros a year ago, compared with market expectations of 357.39 million euros, according to LSEG data.

Birkenstock said its average selling price rose 14% in fiscal 2023, while unit growth was 6%.

The company forecast fiscal 2024 revenue of between €1.74 billion and €1.76 billion, compared with analysts’ expectations of €1.72 billion. Nonetheless, revenue growth is expected to be 17-18%, up from 20% in 2023.

Birkenstock expects adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) in constant currency for 2024 to be between €520 million and €530 million.

After a disappointing market debut in October, the stock ended 2023 up about 19%.

(1 dollar = 0.9187 euros)