Shares of shoe company Birkenstock ( BIRK -15.98%) got knocked down on Thursday after the company reported financial results for its fiscal third quarter of 2024. Most headlines say that the company missed estimates from analysts, but I think this is a weak explanation for what's happening today, as I'll explain.

Birkenstock Holding PLC’s stock fell 14.6% early Thursday, after the iconic German sandal and clog maker’s fiscal third-quarter profit fell short of estimates. The company had net income of 74.6 million euros ($ 82.

Just ask Birkenstock Holding. Although the company posted its highest quarterly revenue on record, its stock tumbled Thursday. The results failed to meet investors’ lofty expectations, putting the stock on track for its largest percentage decline since its public debut last October.

Revenue increased 19 percent in the third quarter to 565 million euros, up from 473 million in the same time last year.