Victoria Secret Shares Soar Premarket Following Buyback Announcement
Dec 29, 2021 By MarketDepth
Victoria’s Secret (NYSE: VSCO) shares soared 8% during premarket trading Wednesday following the retailer’s announcement detailing share buybacks. Furthermore it confirmed positive fourth quarter sales, operating income as well as earnings guidance.
The American lingerie, clothing and beauty retailer has teamed up with Goldman Sachs to repurchase UD250 Million of its shares amid an accelerated stock repurchase program. The deal is expected to be done within the first quarter of 2022. To commence, it will receive 4.1 Million shares of its stock by December 31.
Depending on price
The number of shares set to be repurchased will depend on the volume-weighted average price of the retailer’s common stock during the period of the ASR minus a discount, and will be subject to adjustments agreeable with the terms of the ASR.
“I am very pleased with our fourth quarter performance to date and believe we have solid plans in place for the balance of this holiday selling season. I was particularly encouraged by our sales growth during the peak shopping days over the Thanksgiving weekend and the large rush of business as we approached December 25th. Our stores are in a good inventory position as we begin our semi-annual sale and anniversary the positive stimulus impact on sales in January of last year. Performance has been broad-based across all of our businesses, and our stores channel has been a position of strength for our results. The teams have executed well and focused on what we can control in this challenging supply chain environment, and I could not be more proud of our efforts.”CEO Martin Waters