The UK division of German footwear retailer Birkenstock has reported a jump in sales but narrowing profits amid speculation the company could go public.
Birkenstock UK reported a 49 percent increase in revenue to 34.55 million pounds despite “a challenging business environment” in the year to September 30, according to filings at Companies House.
The company saw growth across all three sales channels despite rising inflation and the cost-of-living crisis, it said.
Retail revenue surged 139 percent to 4.5 million pounds, and wholesale – which accounted for 87 percent of overall revenue – rose 40 percent to 21.34 million pounds.
Sales revenue ‘above initial expectations’
Despite the company’s revenue growth, however, its profit after tax for the year narrowed to 638,910 pounds from 716,680 pounds the prior year.
A spokesperson said: “Birkenstock UK Ltd. reports its numbers in line with local statutory requirements on a stand-alone basis. The published figures however include impacts of local tax regulations following OECD guidelines to comply with both German and UK regulations.
“Accordingly the informative value of the reported figures for the operating profitability of the UK business is limited and is to be seen in the context of consolidated group numbers.”
Looking at more recent trading, Birkenstock UK said sales of shoes and sales revenues have been “above initial expectations” in the current year.
The financial update comes amid speculation that Birkenstock could be listed in the US by private equity firm L Catterton, which acquired a majority stake in the footwear manufacturer in 2021.
LVMH-backed L Catterton is considering an IPO for the retailer as soon as September which could value the business at more than 8 billion dollars, Bloomberg reported earlier this month.