Birkenstock Shares Surge 33% on $250 Million Accelerated Buyback
Birkenstock Holding plc announced a $250 million accelerated share buyback agreement with Goldman Sachs, causing its stock to surge up to 33% for the week. The company repurchased 6 million shares initially at $33.21 each, with the deal expected to close by June 2026. CEO Oliver Reichert cited a disconnect between share price and fundamentals, expressing confidence in the brand's growth despite recent earnings showing a profit decline due to currency headwinds and Middle East delivery disruptions.
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Birkenstock (BIRK) Soars 33% on $250M Buyback
Birkenstock Holding Plc (NYSE:BIRK) saw its stock surge 32.7% week-on-week after announcing a $250 million accelerated share buyback program. The company entered into an accelerated share repurchase agreement with Goldman Sachs, which will initially deliver 6 million shares (80% of the total). Based on a purchase price of $33.21 per share, Birkenstock is set to receive over 7.5 million shares. The buyback will be funded through cash on hand and a revolving credit facility, with the transaction expected to close before June 30, 2026. CEO Oliver Reichert stated that short-term market dynamics have created a disconnect between the share price and the company's underlying fundamentals, and that deploying cash toward share repurchases represents the most attractive use of capital in the current environment.
Yahoo FinanceBirkenstock (BIRK) Soars 33% on $250M Accelerated Share Buyback
Birkenstock Holding Plc (NYSE:BIRK) saw its stock surge 32.7% week-on-week after announcing a $250 million accelerated share buyback program. The company entered into an agreement with Goldman Sachs, which will initially deliver 6 million shares (80% of the total). The final number of shares will be determined based on a purchase price of $33.21 per share, with Birkenstock set to receive over 7.5 million shares. The buyback will be funded through cash on hand and a revolving credit facility, with closure expected before June 30, 2026. CEO Oliver Reichert stated that short-term market dynamics have created a disconnect between the share price and underlying fundamentals, making the buyback the most attractive use of capital in the current environment. The company indicated it may pursue further share repurchases depending on market conditions.
Yahoo FinanceWhy Birkenstock Holding Rocketed Higher This Week
Shares of Birkenstock Holdings (NYSE: BIRK) surged 32.3% this week following the announcement of a $250 million accelerated stock buyback. The company immediately repurchased six million shares at an average price of $33.21, with the remaining $50 million to be used through June 30. CEO Oliver Reichert stated the buyback reflects confidence in the brand's near-term and long-term value, citing 13-15% annual revenue growth targets in constant currency and strong free cash flow. The stock had previously fallen to all-time lows after an earnings report showing only 8% revenue growth and a 10% profit decline, attributed to currency headwinds and one-time tariff impacts. On a constant currency basis, revenue grew 14%. After the rally, Birkenstock trades at 18.7 times trailing earnings, considered cheap given its mid-teens growth outlook.
Yahoo FinanceBirkenstock Shares Rise on $250 Million Share Buyback
Birkenstock shares rose 4.2% to $41.30 on Friday after the sandal maker announced a $250 million accelerated share buyback plan. The company said it was taking advantage of a disconnect between its share price and fundamental performance. CEO Oliver Reichert expressed strong confidence in near-term and long-term value, citing a huge runway for growth and annual revenue growth targets of 13-15% on a constant currency basis. The accelerated repurchase involves a $250 million payment to Goldman Sachs, with initial delivery of 6.0 million shares representing 80% of the anticipated total, based on the May 20 closing price of $33.21. The transactions are expected to be completed before June 30, 2026. The announcement came a week after Birkenstock reported second quarter earnings showing net income fell 22.1% to 81.9 million euros despite revenue rising 7.7% to 618.3 million euros, with headwinds from Middle East delivery disruptions and muted European consumer sentiment.
Yahoo FinanceBirkenstock Soars 19% on $250 Million Share Buyback Agreement
Birkenstock Holding plc (NYSE:BIRK) shares surged 19.45% on Thursday, closing at $39.67, after the company announced a $250 million accelerated share buyback agreement with Goldman Sachs. Under the deal, Birkenstock will repurchase shares at $33.21 each, with an initial delivery of 6 million shares (80% of total). The final number of shares is yet to be determined but is expected to exceed 7.5 million. The buyback will be funded through cash on hand and a revolving credit facility, with closure expected before June 30, 2026. CEO Oliver Reichert stated that short-term market dynamics have created a disconnect between the share price and underlying fundamentals, making the buyback the most attractive use of capital. The agreement is subject to customary adjustments and termination provisions.
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