WOW STORY OF THE DAY: From Sandals to Stardom: How Birkenstock Walked Into a $2.1B Fashion Empire

Updated: December 10, 2025 21:43

Image Source: Mint

Birkenstock, once synonymous with orthopedic comfort, has transformed into a global fashion powerhouse. In 2025, the brand reported €2.09B ($2.1B) in revenue, with its fastest growth coming from luxury collaborations, which surged nearly 30% YoY. From runways to red carpets, Birkenstock proves comfort can conquer couture.

Birkenstock’s journey is one of reinvention. Founded in Germany in the 18th century, the brand was long associated with practicality and comfort. But in recent years, Birkenstock has rewritten its narrative, stepping boldly into the world of luxury fashion collaborations.

In fiscal 2025, Birkenstock reported €2.09 billion in sales, a 15.9% increase year-over-year. While sandals remain its core product, the standout driver of growth has been strategic partnerships with luxury houses and designers, which grew nearly 30% YoY. These collaborations have elevated Birkenstock from a comfort staple to a fashion statement, embraced by celebrities and featured on global runways.

The company’s expansion strategy also includes direct-to-consumer growth, with new flagship stores and strong performance in Asia-Pacific markets, where revenue rose 21%. Gross margins improved to 60.5%, reflecting pricing power and premium positioning.

CEO Oliver Reichert emphasized that Birkenstock’s success lies in balancing its heritage of comfort with a modern identity rooted in sustainability, fashion relevance, and cultural cachet.

Notable Updates & Major Takeaways

Revenue Milestone: Full-year 2025 sales hit €2.09B ($2.1B), up 15.9% YoY.
Collaboration Growth: Luxury collabs surged nearly 30% YoY, outpacing core sandal sales.
Global Expansion: Asia-Pacific revenue grew 21%, supported by new stores and brand awareness.
Profitability Gains: Gross margin expanded to 60.5%, with adjusted EBITDA at €218M (34.4% margin).
Strategic Positioning: Birkenstock is now positioned as both a comfort brand and luxury fashion player.
Future Outlook: Plans include deeper collaborations, expansion into closed-toe footwear, and sustainability-driven innovation.

Closing Note

From orthopedic sandals to luxury runways, Birkenstock has proven that comfort and couture can coexist. By betting big on collaborations, the brand has reinvented itself as a cultural icon, walking confidently into a $2.1B future where heritage meets high fashion.

Sources: Birkenstock Holding, AInvest, Footwear Magazine

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