Dive Brief:
- Birkenstock on Tuesday announced that it opened its tenth owned retail location in the U.S. in Nashville, Tennessee, according to a company press release.
- The store features products for men, women and children, including sandals, sneakers, clogs, shoes and boots. Shoppers can also view the brand’s Care Essentials collection of foot care products.
- In a separate announcement on Thursday, Birkenstock said it was continuing its expansion in France with a new store in Paris.
Dive Insight:
Birkenstock described Nashville as “the perfect backdrop” for its continued retail expansion in the U.S.
The company last fall said it wants to open more retail locations to meet shopper demand for physical touchpoints, with the goal of expanding its fleet by 50% in fiscal 2025. The company opened 20 stores last year.
“Expanding into Nashville, a city renowned for its creativity and individuality, is an exciting moment for Birkenstock,” David Kahan, president of Birkenstock Americas, said in a statement. “With a community that values authenticity and craftsmanship, we couldn’t imagine a better place to continue growing our brand.”
The store’s interior mirrors Birkenstock’s product materials by utilizing cork, felt and leather. The company also commissioned Nashville-based artist Emily Brown to create a large-scale leather sculpture art piece to celebrate the brand’s signature material.
In addition to its new U.S. store opening, Birkenstock has been plotting its international expansion. Last July, the footwear brand appointed Evelyn Chua to its newly created role of managing director for Southeast Asia and Down Under. In her role, Chua is tasked with improving the company’s retail operations in Singapore, Malaysia, Indonesia, Vietnam, Philippines, Thailand, New Zealand and Australia.
Alongside its brick-and-mortar expansion, Birkenstock is also growing its direct-to-consumer business. In its latest earnings, Q4 revenue was up over 21% year over year to 455.8 million euros (about $474 million at the time). During the quarter, wholesale revenue grew 26% and DTC rose 18% on a constant-currency basis. The company’s guidance for fiscal year 2025 includes year-on-year currency-adjusted revenue growth of 15% to 17%.
The company is preparing for future growth by increasing its production capacity. Last year, the company allocated 80 million euros toward its production ramp-up. It revamped factories in Germany and Portugal, which helped the company sell more units and fueled supply chain capabilities.
