Birkenstock, the sandal maker, opened 12% higher after it upgraded its full-year revenue and profit forecasts following strong demand and increased full-price selling.
Revenues for the 2024 financial year are now expected to reach between €1.77 billion and €1.78 billion, a lift from initial guidance of between €1.74 billion and €1.76 billion.
Underlying earnings guidance was revised up from between €520 million and €530 million to between €535 million and €545 million.
It comes as retailers continue to stock the group’s products, which include its well-known cork-based sandal as well as newer closed-toe styles.
Many retailers have been forced to cut back on inventories in recent times as demand for products such as footwear and clothing remain subdued.
However, Birkenstock hasn’t suffered from this, reporting a 19.2% surge in its wholesale revenues.
Meanwhile, its strategy to sell products straight to consumers at full price is also paying dividends, with direct-to-consumer sales up more than 30% in the second quarter.
Birkenstock reported a 21.6% spike in revenues to to €481.2 million, beating Wall Street guidance of €466.1 million, while earnings per share came in at €0.41, improving on consensus of €0.36.