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Victoria’s Secret Pops on Accelerated Buyback, Repeating Outlook -Breaking

by Mike Robinson

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© Reuters.

By Dhirendra Tripathi

Investing.com – Victoria’s Secret stock (NYSE:) soared 9% in Wednesday’s premarket after the company revealed an accelerated share repurchase plan while also reiterating its fourth-quarter sales, operating income and earnings guidance.

According to the company, its $250 million share purchase will cover approximately 4.1 million shares. It is expected that it will be purchased from Goldman Sachs on Friday. Retailer said that the company expects to complete the settlement for the purchase volume and price in the first quarter (2022).

At the company’s current base of 88.59 million shares, the buyback comprises 4.6% of its equity. Buybacks boost share prices because future profits are distributed to those who have fewer shares.

According to the company, sales were expected to be in the region of $2.1 billion to $1.16 billion. Operating income will reach $315million at the centre of the guidance range. Diluted EPS will equal $2.50 at midpoint.

Adjusted profit per share was 81cs during the third quarter, compared to 82cs the year before. The net sales increased by 7% to $1.44 trillion.

L Brands (NYSE 🙂 spun off the intimates specialty retailer and beauty products retailer earlier in the year. The parent’s retail business of bath, body and home fragrance is now housed under Bath Body WorksI.

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