Higher pricing and U.S. demand drive Birkenstock to beat revenue expectations.

• Birkenstock reported its holiday quarter results.
• The footwear retailer started trading on the New York Stock Exchange in October.

On Thursday, the German sandal company reported a 26% year-on-year increase in holiday quarter revenue, exceeding expectations, due to higher pricing and increased demand in the U.S.

According to a survey of analysts by LSEG, formerly known as Refinitiv, the shoemaker's performance in its first fiscal quarter exceeded Wall Street's expectations.

• Earnings per share: 4 euro cents vs. 9 euro cents expected
• Revenue: 303 million euros vs. 288.7 million euros expected.

The newly public shoemaker, which began trading on the New York Stock Exchange under the ticker "BIRK" in October, experienced a subdued debut when its shares dropped more than 12% on its first day as a public company. However, shares have since recovered and are up more than 5% this year, as of the Wednesday close.

The company's fiscal 2023 results were reported in January, marking the most successful year in the company's nearly 250-year history. Sales increased by 20%, and the retailer made significant progress in expanding its direct-to-consumer business, which offers better profits and more customer insights than relying on wholesale partners.

Despite soft demand in North America, Birkenstock reported a 21% increase in sales during fiscal 2023, outperforming other retailers like , and Timberland-owner.

L Catterton's acquisition of a majority stake in Birkenstock in 2021 marked the end of nearly 250 years of family ownership, which began when German cobbler Johann Adam Birkenstock founded the company in 1774.

Birkenstock's new owners pursued a growth strategy that prioritized increasing direct-to-consumer sales, ending certain wholesale partnerships, and promoting the sale of higher-priced items. As a result, sales increased significantly, and the company's market cap is now approximately $9.7 billion, more than double its 2021 valuation of $4.85 billion.

Birkenstock has been using some of its earnings to pay off debt since going public. In the fall, it made debt payments that reduced its net leverage to below 2.5-times EBITDA.