Birkenstock Authorizes $200M Buyback, But Retail Remains Cold

One of the company's investors is selling over $800 million worth of shares in a secondary market offering.

German sandals maker Birkenstock Holding (BIRK) said on Wednesday that it plans to buy back $200 million worth of company shares and announced the sale of a block of shares by one of its investors.

BK LC Lux MidCo, an entity affiliated with private equity firm L Catterton, is selling 15.7 million shares of Birkenstock at $52.50 a piece. That totals to over $824 million.

The shares are being offered to public investors through underwriters in a secondary public offering.

Meanwhile, Birkenstock has authorized a $200 million buyback by purchasing an estimated 3.7 million shares. The company's repurchase depends on the progress of the sale by BK LC Lux.

Goldman Sachs and JPMorgan are acting as joint book-running managers for the offering.

The move comes at a time of strength for the German shoe brand. Earlier this month, Birkenstock reported strong results for the last quarter and raised its annual profit forecast.

Revenue rose by a higher-than-expected 19% for its fiscal second quarter, while net profit grew 68%.

Birkenstock’s recent performance contrasts with that of other shoe brands, including Nike (NKE) and Crocs, which are grappling with uneven consumer demand following President Donald Trump’s tariff announcements last month.

On Stocktwits, the retail sentiment was 'bearish,' unchanged from a month ago.

Birkenstock was listed on the New York Stock Exchange in October 2023.

Its shares are down 4.2%% year to date.

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