Birkenstock Holding plc (NYSE:BIRK) shares gained 2.2% in premarket trading Thursday after the footwear company announced a $250 million accelerated share repurchase agreement with Goldman Sachs International.
The company said it entered into the ASR agreement to capitalize on what it views as a disconnect between its share price and fundamental business performance. Birkenstock will make a $250 million payment to Goldman Sachs on May 21, 2026, and expects to receive initial delivery of approximately 6.0 million ordinary shares.
"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," commented Oliver Reichert, CEO of Birkenstock Group. "We believe deploying our substantial cash position toward repurchasing our own shares represents the most attractive use of capital in the current environment."
The final number of shares to be repurchased will be determined by the volume-weighted average price during the term of the ASR agreement. Reichert added that the company remains confident in its ability to achieve revenue growth of 13-15% annually in constant currency. The transactions are expected to be completed before June 30, 2026.
