Victoria’s Secret & Co (NYSE:VSCO) is trading higher Wednesday morning after the company announced a $250 million accelerated share repurchase program and reaffirmed guidance.
Victoria's Secret will make an initial payment of $250 million to Goldman Sachs and receive an initial delivery of approximately 4.1 million shares of its common stock on Dec. 31. The final settlement of the accelerated share repurchase program is expected to be completed in the first quarter of 2022.
Victoria's Secret also reaffirmed fourth quarter sales, operating income and earnings guidance.
Revenue is expected to be in a range of flat to up 3% year-over-year. The company expects earnings to be in a range of $2.35 to $2.65 per share and operating income to be in a range of $295 million to $335 million.
"Over the past few months, we have stabilized our business and created a platform for future growth while generating significant cash flow. Our financial stability and cash flow potential are pillars of strength and competitive advantages," said Martin Waters, CEO of Victoria's Secret.
Victoria's Secret is a specialty retailer of lingerie, pajamas, and beauty products with prestige fragrances and body care.
VSCO Price Action: Victoria's Secret has traded as low as $39.79 and as high as $76 over a 52-week period.
The stock was up 9.1% at $53 at time of publication.
Photo: webandi from Pixabay.