Shares of Victoria’s Secret & Co (NYSE: VSCO) are up nearly 15% on Wednesday after the retailer authorised a new share repurchase programme.
Victoria’s Secret approves $250 million buyback
In the press release, the lingerie, clothing, and beauty products company said its board has approved $250 million worth of stock buyback to be executed before the end of its fiscal 2023.
This authorisation, the retail chain added, will go live right after its current repurchase programme (similar sized) is complete – expected by the end of the current month.
Last week, the Ohio-based company said Amy Hauk – the Chief Executive of its namesake brand will step down on March 31st. Wall Street currently has a consensus “overweight” rating on Victoria’s Secret stock and sees upside in it to $48 on average; up another 25% from here.
Victoria’s Secret stock up on narrowed guidance
Also on Wednesday, Victoria’s Secret narrowed its earnings guidance for the fourth quarter. It now forecasts $2.05 a share to $2.25 a share of earnings in Q4 versus its previous outlook for $2.0 a share to $2.45 a share.
Despite some significant weather challenges directly before Christmas, our sales to date have trended above plan. The holiday season was highly promotional and we were appropriately aggressive.
The retailer reiterated its guidance for a high-single-digit hit to quarterly net sales as well. In Q4 of last year, it had $2.175 billion of sales.
Versus its high in late November, Victoria’s Secret stock is still down roughly 20%.
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