Here's Why Birkenstock Stock Dropped Nearly 16% Last Month
Shares of shoe company Birkenstock (NYSE: BIRK) dropped 15.6% during August, according to data provided by S&P Global Market Intelligence. The stock was actually up close to 8% late in the month before shares plunged on Aug. 29. That was the day the company reported financial results for its fiscal third quarter of 2024. As you might have guessed, investors were let down after looking over the numbers.
To be clear, it's not because Birkenstock's numbers were bad. On the contrary, the company set records. The London-based company reports financials in euros. But adjusting to dollars, it generated over $600 million in Q3 revenue and had about $80 million in net profit. Both numbers are strong.
However, there's a difference between good numbers and the numbers investors were expecting, and that's why Birkenstock stock fell. It seems that investors had wanted the shoe company to post better growth and raise its full-year guidance. But that didn't happen, and it led to the disappointment.
Source Fool.com
