Investing.com -- Birkenstock Holding plc (NYSE: BIRK) shares gained 17% Thursday after the footwear company announced a $250 million accelerated share repurchase agreement with Goldman Sachs International.

The company said it entered into the ASR agreement to capitalize on what it views as a disconnect between its share price and fundamental business performance. Birkenstock will make a $250 million payment to Goldman Sachs on May 21, 2026, and expects to receive initial delivery of approximately 6.0 million ordinary shares, representing about 80% of the shares underlying the agreement, based on the closing price of $33.21 on May 20, 2026.

"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," commented Oliver Reichert, CEO of Birkenstock Group and Member of the Board of Directors. "We believe deploying our substantial cash position toward repurchasing our own shares represents the most attractive use of capital in the current environment."

The final number of shares to be repurchased will be determined by the volume-weighted average price of Birkenstock’s ordinary shares during the term of the ASR agreement, less a discount and subject to customary adjustments. At final settlement, the company may receive additional shares or, under certain circumstances, may be required to make a cash payment.

Reichert added that the company remains confident in its ability to achieve revenue growth of 13-15% annually in constant currency, while maintaining strong margins and strong free cash flow generation. The transactions under the ASR agreement are expected to be completed before June 30, 2026.