Why Birkenstock Stock Hit an All-Time High Above $57 Per Share Today
Shares of shoe company Birkenstock (NYSE: BIRK) hit all-time highs on Thursday after the company reported financial results for its fiscal second quarter of 2024. The stock rose as much as 15% before settling for a 12% gain by the time the market closed for the day.
Birkenstock clearly doesn't have a demand problem, which is encouraging for a shoe company that's been in business for 250 years. In Q2, the company had record revenue of 481 million euros (about $521 million), which was up 22% year over year.
Birkenstock's Q2 gross margin took an unexpected step back. It had a 56% margin in Q2 compared to a nearly 60% margin in the prior-year period. But management pointed to temporary issues and still expects to hit a 60% gross margin in the medium term, which might explain why investors were willing to look past the issue.
Source Fool.com
