Birkenstocks are not works of art, court rules
But the company’s revenue chart paints a pretty picture, as sales rose again in Q1.
Some controversial “ugly” shoes are making strides in the comfort over style space. UGGs are back in fashion, with the TikTok-viral Tasman slippers routinely selling out, and just last week, Crocs switched back into sports mode, with its stock surging 24% after a sales bump.
But it’s Birkenstock, the centuries-old shoemaker known for its buckled sandals and Boston clogs, that’s now making headlines. On Thursday, Germany’s top court ruled that Birkenstock’s distinct orthopedic designs are not, despite the company’s best arguments, works of art.
The ruling culminates a long legal battle, with Birkenstock first attempting to gain copyright protections to prevent copycat brands from selling similar products back in May 2023. Still, the court said that the shoes exhibited “pure craftsmanship using formal design elements” — and a glowing quarterly earnings report, also released yesterday, suggests that a growing number of sandal enthusiasts agree.
Buckle up
Birkenstock’s revenue was up 19% year on year to €362 million ($379 million) in Q1 FY25, beating expectations off the back of a strong holiday period; however, the company’s shares dipped yesterday and are down a further 2% this morning, as investors remain cautious about the cost of the brand’s aggressive expansion plan into the Asian market squeezing annual margins.
Still, if the past decade is anything to go by, the Birkenstock boom will march forward. Indeed, in 2024, Birkenstock’s revenue grew 21%, boosted by its high-end 1774 category that featured collaborations with designers like Manolo Blahnik and Rick Owens, along with a hot pink cameo in “Barbie” (2023).
