Birkenstock UK profits fall despite jump in revenues
According to the retailer, ‘administrative expenses’ that added up to more than £4.4m led operating profits to drop from £962,506 to £743,632
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Birkenstock has revealed that its profits fell 12% to £3.9m in the sandal brand’s UK division for the year to 30 September 2022, despite its revenue surging 49% to £34.5m.
While the retailer’s wholesale revenues increased 40% from £21.2m to £30m in 2022 – representing 87% of the company’s total revenue – Birkenstock’s EBITDA decreased to £822k from £1.2m in 2021.
According to the retailer, “administrative expenses” that added up to more than £4.4m led to operating profits dropping from £962,506 to £743,632.
However, full-year retail revenues still more than doubled, growing 139% year-on-year to £4.5m in the year. During this period, retail represented 13% of the group’s total revenue.
Nonetheless, Birkenstock UK maintains that it has coped well with inflationary pressures and the cost-of-living crisis.
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.