Birkenstock Shares Rise on $250 Million Share Buyback

by · WWD
Inside Birkenstock's Paris store.Maarten Willemstein

Investors like Birkenstock‘s $250 share buyback plan, an indication of the brand’s management team’s confidence in the future of the company.

Birkenstock shares on Friday rose 4.2 percent in mid-day trading to $41.30. The sandal maker disclosed the share repurchase plan on Thursday. Shares closed on Thursday at $39.67, up from the previous day’s close of $33.21.

Birkenstock said it was accelerating the stock repurchase plan to “take advantage of disconnect between share price and fundamental performance.” It will make a $250 million payment to Goldman Sachs, with the expectation of the initial delivery of 6.0 million Birkenstock ordinary shares representing 80 percent of the number of shares anticipated in the underlying share repurchase agreement based on the closing price of $33.21 on May 20, 2026. The transactions are expected to be completed before June 30, 2026.

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“We believe deploying our substantial cash position toward repurchasing our own shares represents the most attractive use of capital in the current environment,” the company’s CEO Oliver Reichert said. “Given the volatile environment of the capital markets, we will continue evaluating market conditions to take advantage of further opportunities for share repurchases in the future.”

Reichert added that the accelerated share repurchase represents a “strong statement that we believe in the near-term and long-term value of Birkenstock.” He said that the business continues to deliver outstanding performance and that there is a “huge runway for growth ahead,” noting confidence in the company’s ability to achieve revenue growth of 13 percent to 15 percent annually on a constant currency basis. He also spoke of confidence in Birkenstock’s ability to maintain strong margins and strong free cash flow generation.

The clog-brand posted second quarter earnings results a week ago. For the period ended March 31, net income fell 22.1 percent to 81.9 million euros, on a revenue gain of 7.7 percent to 618.3 million euros. The company experienced some headwinds in the quarter, which included the inability to complete some deliveries to the Middle East due to the war in the region and also from muted consumer sentiment in Europe on higher energy costs and inflation due to the war.