Stock prices for the German footwear company Birkenstock climbed almost 17% on Thursday following the announcement of a $250 million share repurchase program through an accelerated buyback agreement, coming after a recent drop in share value.
This announcement follows just days after a significant stock decline caused by reduced quarterly growth numbers and an unmodified annual forecast, raising concerns about where the brand fits between high-end luxury and mainstream consumer markets.
Chief Executive Oliver Reichert explained that the share buyback decision demonstrates leadership’s belief that current stock prices don’t accurately represent the company’s actual business 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,” Reichert stated, further explaining that using available funds for share repurchases represented the “most attractive use of capital” given current market conditions.
Stock prices reached $38.66 during trading, positioning the company for its strongest single-day performance since going public in 2023, though still significantly lower than the peak price of $64.70 reached in August 2024.
Previously, Birkenstock had announced plans to buy back approximately $200 million in shares during fiscal year 2026, with CFO Ivica Krolo indicating last week that company leadership was evaluating the best approach for deploying available capital after losing an earlier chance to complete a buyback during a secondary stock offering, which had been successfully executed in 2025.
The footwear maker confirmed its projected annual revenue growth target of 13% to 15% using constant currency calculations.
Company officials expect the accelerated share repurchase program to conclude by June 30.
