Overview
- On Thursday Birkenstock entered a $250 million accelerated share repurchase with Goldman Sachs that included an initial delivery of about 6 million shares at a set price of $33.21 per share.
- The company will fund the transaction with cash on hand and borrowings from a revolving credit facility and noted the agreement is subject to customary adjustments and possible termination.
- CEO Oliver Reichert framed the buyback as a response to a gap between market price and the company’s underlying performance and the company reiterated its 13–15% annual revenue growth target in constant currency.
- The announcement sent the stock up roughly mid‑to‑high‑teens in one day but the share price remains well below its 2024 peak and analysts have trimmed forecasts after recent quarterly weakness.
- Recent margin pressure from higher U.S. import tariffs and delivery disruptions to the Middle East pushed management to reallocate inventory to faster growth markets, and the buyback could tighten available cash while offering immediate share‑count reduction if the deal completes.