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Birkenstock leans into ballet style as closed-toe business expands
The German footwear company said it invested 26 million euros in capital expenditures in the quarter to add production capacity and expand retail operations globally.
Birkenstock is expanding beyond its sandals, with executives pointing to growth in the brand's closed-toe offerings as new ballet-inspired styles gain traction. In commentary on a third-quarter earnings call, CEO Oliver Reichert said newness and innovation helped drive strength across both open-toe and closed-toe product lines at the brand's direct-to-consumer channel. Reichert said closed-toe growth is being led by newness in clogs and shoes, and the company is also using collaborations to target demand linked to ballet flats. He cited prior partnerships including Repetto, along with Song for the Mute and Ader Erro, and said global demand contributed to particularly strong interest in the mary jane style. The CEO said the company is “purpose-driven” while maintaining confidence in the footbed's strength and emphasized the ability to target a broad set of consumers across geographies and demographics. Birkenstock also described its approach to distribution as disciplined to maintain scarcity, segment the market, manage channel growth, and protect full-price realization. Financially, for the third quarter ended June 30, Birkenstock reported profits of 109.6 million euros, down 15.2 percent year over year, alongside revenue growth of 13.3 percent to 719.5 million euros. The company said it invested 26 million euros in capital expenditures during the quarter to increase production capacity and expand retail operations globally, according to Yahoo Finance.