Why Birkenstock Stock Hit an All-Time High Above $57 Per Share Today

Group 1 - Birkenstock's shares reached all-time highs following the announcement of strong financial results for Q2 2024, with a stock increase of 12% by market close [1] - The company reported record revenue of 481 million euros (approximately $521 million) in Q2, reflecting a year-over-year growth of 22% [2] - Despite a decline in gross margin to 56% from nearly 60% in the previous year, management anticipates returning to a 60% gross margin in the medium term, which reassured investors [3] Group 2 - Management revised its full-year revenue growth expectation from 17%-18% to 19%, contributing to the stock's surge [4] - Since going public in late 2023, Birkenstock has demonstrated impressive results, with a price-to-sales valuation of about 6, which is considered high for a shoe company, but justified by strong profit margins and ongoing growth [5] - The fastest growth is observed in Asia, the Middle East, and Africa, with a 42% increase in Q2, indicating significant expansion potential as these regions currently represent only 11.5% of the business [6]