Birkenstock Plans 900 Million Bond Sale, Eyes Up to $500 Million Buybacks

Birkenstock is preparing its first bond deal in more than five years as the German footwear maker looks to refinance existing debt and possibly create more room for shareholder returns. The company is set to raise 900 million, or about $1.04 billion, through seven-year notes that can be called after three years, according to a person familiar with the transaction. Birkenstock is expected to speak with investors on Monday at 11 a.m. UK time, with additional meetings scheduled through Tuesday.

The planned issue would mark Birkenstock's first bond sale since 2021, when it raised 430 million of notes due in 2029. That same year, the company was sold to L Catterton, the LVMH-backed private equity firm, before later listing on Wall Street in 2023. The timing is important for investors because Birkenstock recently disappointed the market by keeping its full-year earnings forecast unchanged after US tariffs and currency swings weighed on profits, even as constant-currency sales rose 14% to 618 million in the quarter ended March.

The stock has regained momentum after Birkenstock announced a $250 million accelerated share repurchase, helping shares climb to about 19% year-to-date gains. In a Monday announcement, the company said it may spend up to $500 million on additional buybacks depending on market conditions, though that capital could instead be used to refinance other existing debt or for general corporate purposes. BNP Paribas SA and JPMorgan Chase & Co. are acting as bookrunners on the bond offering, which is being issued by Birkenstock Group BV & Co KG.