Birkenstock Holding plc (NYSE:BIRK) said Thursday that it has entered into a $250 million accelerated share repurchase agreement with Goldman Sachs International, a move that corresponded with a 2.2% gain in the companys shares in premarket trading.
Under the terms of the agreement, Birkenstock will make a $250 million payment to Goldman Sachs on May 21, 2026. The company expects to receive initial delivery of approximately 6.0 million ordinary shares, which it says represents about 80% of the shares underlying the ASR based on Birkenstocks closing price of $33.21 on May 20, 2026.
The company described the ASR as a way to address what management sees as a divergence between the market price of the stock and the companys underlying operating performance. "Short-term market dynamics have resulted in what we believe is a strong disconnect between our share price and the strength of our underlying fundamentals," said Oliver Reichert, Chief Executive Officer and Member of the Board of Directors.
Reichert said Birkenstock sees repurchasing shares as the best use of its substantial cash position in the current environment. The firm noted that the final count of repurchased shares will be settled based on the volume-weighted average price of Birkenstocks ordinary shares during the ASR term, less a discount and subject to customary adjustments. At final settlement, Birkenstock may receive additional shares or, in certain cases, could be required to make a cash payment.
The company also reiterated its confidence in its near-term operational outlook, saying it remains on track to achieve revenue growth of 13-15% annually in constant currency while maintaining strong margins and producing strong free cash flow. Executives indicated that the transactions under the ASR agreement are expected to be completed before June 30, 2026.
This ASR represents a sizable use of cash aimed at returning capital to shareholders and reducing outstanding share count, subject to the mechanics of the agreement and final VWAP-based settlement. The companys statements tie the repurchase directly to managements view of current market valuation relative to underlying business performance, while also reaffirming revenue and margin expectations.
Where this matters
- Public equity investors in Birkenstock and market participants tracking capital allocation decisions.
- Consumer discretionary and footwear sector stakeholders monitoring buyback activity and guidance.
- Fixed-income and cash-holding analyses that consider large corporate uses of cash.