In a press release issued on Thursday, May 21, Birkenstock announced its intention to repurchase $250 million worth of its own shares. The decision comes in the wake of a drop in its stock price.
“In our view, short-term market dynamics have created a significant disconnect between our stock price and the strength of our fundamentals,” explained Oliver Reichert, CEO of Birkenstock. In a statement released Thursday, the German footwear company—backed by LVMH through the L Catterton fund—announced that it had commissioned Goldman Sachs to repurchase $250 million worth of its own shares.
“In the current environment, we believe that using our substantial cash reserves to repurchase our own shares represents the most appropriate and attractive use of capital,” Oliver Reichert explained.
Since the start of the year, Birkenstock’s stock has fallen by more than 18%. On May 13 alone, its shares had fallen by 13%. The company nevertheless expressed confidence following this decision and reaffirmed its annual revenue growth forecast of between 13% and 15% at constant exchange rates, as reported by the news agency Reuters.
According to the news agency, Birkenstock’s stock jumped nearly 17% immediately after the sandal manufacturer announced the buyback of its own shares. This accelerated program is expected to be completed by June 30.
A loss of six million euros
Like most of the apparel sector, Birkenstock has been hit hard by a geopolitical landscape marked by Donald Trump’s tariffs and the conflict in the Middle East. Oliver Reichert had also stated that war-related inflation was curbing consumer spending.
“We are facing multiple conflicts in the Middle East, which are disrupting global supply chains and driving up energy costs,” he said during an earnings conference call.
The German company reported second-quarter 2026 revenue of €618.3 million, falling short of analysts’ average estimate of €620.07 million, according to London Stock Exchange data. Birkenstock also reported a loss of €6 million in its Europe, Middle East, and Africa (EMEA) segment, due to disruptions in shipments to the region and a decline in demand linked to the conflict.
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