High demand for recorded music - The value of Birkenstock stock skyrockets.
A footwear company based in Linz am Rhein, Germany, reported a significant financial achievement in the second quarter. On Thursday, they revealed that their revenue climbed to approximately 481 million euros, an impressive 22% spike. Additionally, their profit soared by 45% to reach 72 million euros.
Asian markets experienced the highest sales growth, jumping by 42%. Europe and the US saw similar jumps of 21% each.
A remarkable recovery after a shaky IPO launch
Last year, Birkenstock made its debut on the New York Stock Exchange. Shortly afterward, the stock market crash occurred, and the company's share price suffered. The market's somber mood and investors' skepticism about consumer spending were to blame. At one point, the stock dropped below its issuance price.
However, the negative sentiment has vanished, and investors are once again optimistic following the encouraging financial results. The stock reached a new record high, climbing more than 50% beyond its lowest point in the previous year. Since going public, it's risen by over 35%.
Birkenstock raises its sales expectations
For the current financial year, which ends in October 2024, Birkenstock has raised its sales forecast from 17% to 20%. This news benefits investors, as it signals further growth. Birkenstock's CEO, Oliver Reichert, believes that the existing products have untapped potential, limited only by fashion trends.
Birkenstock: Not just a comfort shoe anymore
Although the image of Birkenstock's uncool health sandal has long been discarded, the company remains committed to pushing boundaries. Birkenstock collaborates with prominent fashion houses under the name 1774 (founded in 1774), including Dior, Tekla, and Stüssy. These unique partnerships produce limited-edition high-end sandals that go for 390 euros per pair.
The company's parent body, Birkenstock Holding, is headquartered in London. L Catterton, an investment firm, holds 81% of its shares. L Catterton is known for its extensive investments in luxury brands, such as Louis Vuitton, Dior, Hermès, and prominent champagne labels like Dom Pérignon and Möet & Chandon.
Maybe this is a sign that Birkenstock is now on track to becoming a prestigious luxury brand.
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