---
title: "Why Birkenstock Holding Rocketed Higher This Week"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/287396324.md"
description: "Birkenstock Holdings' shares surged 32.3% this week following the announcement of a $250 million accelerated share repurchase program. The stock had recently hit all-time lows since its October 2023 IPO. CEO Oliver Reichert expressed confidence in the company's growth potential, projecting annual revenue growth of 13-15%. Despite a recent earnings report showing an 8% revenue increase and a 10% profit decline, Birkenstock's valuation remains attractive for investors."
datetime: "2026-05-22T18:55:19.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/287396324.md)
  - [en](https://longbridge.com/en/news/287396324.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/287396324.md)
generator: "portal-rs"
---

# Why Birkenstock Holding Rocketed Higher This Week

## Key Points

-   Birkenstock announced an accelerated share repurchase program.
-   Last week, the stock had sunk to all-time lows since its 2023 IPO.
-   Birkenstock looks cheap if the company maintains its current growth trajectory.
-   10 stocks we like better than Birkenstock Plc ›

Shares of **Birkenstock Holdings** (NYSE: BIRK) rallied 32.3% this week through Friday, at 1:30 p.m. EDT, according to data from S&P Global Market Intelligence.

Birkenstock bounced hard off its all-time lows this week. While "all-time low" sounds bad, the company held its IPO in October 2023, so it hasn't been public for very long.

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This week, management made it clear it believes the low stock price is unwarranted. On Thursday, Birkenstock announced an accelerated $250 million stock buyback. That message clearly resonated with investors who quickly snatched up shares on the news. 

## Birkenstock hops off the ground

On Thursday, Birkenstock announced an accelerated share repurchase of $250 million. Birkenstock will immediately repurchase six million shares at an average price of $33.21, which accounts for 80% of the total, while the remaining 20%, or $50 million, will be used to repurchase shares through June 30.

That's already looking like a good deal, since Birkenstock's stock has already leaped to over $41 as of this writing. CEO Oliver Reichert said in the press release accompanying the announcement:

> The $250 million accelerated share repurchase is a strong statement that we believe in near-term and long-term value of BIRKENSTOCK. Our business continues to deliver outstanding performance and we see a huge runway for growth ahead for our beloved brand. We remain confident in our ability to achieve revenue growth of 13-15% annually in constant currency, while maintaining strong margins and strong free cash flow generation.

## Birkenstock looks like a cheap stock

At first glance, Reichert looks correct in his assessment, given that even after yesterday's and today's jump, Birkenstock only trades at 18.7 times trailing earnings. That's a cheap valuation for a stock that plans to grow in the mid-teens for the foreseeable future. 

The reason Birkenstock had gotten so cheap was last week's earnings report, which showed just 8% revenue growth and an adjusted net profit decline of 10%. A profit decline isn't a great sign, but the reason for Birkenstock's declining margins was one: a huge currency headwind, and two: the impact of tariffs that were implemented a year ago.

On a constant currency basis, revenue grew a much better-looking 14%, in line with Birkenstock's targets, while the tariff impact is likely to be one-time.

While apparel stocks haven't looked very enticing in the age of AI, with many name brands down big from their highs, Birkenstock looks like a potential value pick for investors to buy on the cheap.

## Should you buy stock in Birkenstock Plc right now?

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*Billy Duberstein and/or hsi clients have no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.*

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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- [Birkenstock Shares (BIRK) in Focus as Michael Burry Opens a Position](https://longbridge.com/en/news/297209105.md)
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- [What's Going On With Accenture Stock Thursday?](https://longbridge.com/en/news/297175928.md)

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> **Disclaimer: This article is for reference only and does not constitute any investment advice.**