- Victoria’s Secret ( NYSE: VSCO ) has approved a new $250M share repurchase program.
- This new buyback program will run through out 2023 after completion of the current $250M share repurchase program by the end of January 2023.
- Shares acquired will be used under equity compensation plans and for general corporate purposes.
- The company narrowed down Q4 outlook: Operating income now forecasted in the range of $245M to $265M, or approximately 12% to 13% of sales, vs. prior guidance range of $240M to $290M and net income to be in the range of $2.05 to $2.25 per diluted share, compared to previously guidance range of $2.00 to $2.45 per diluted share and consensus of $2.34.
- The company reaffirmed Q4 net sales outlook to decline in the high-single digit range Y/Y.
- CEO Martin Waters commented, “Despite some significant weather challenges directly before Christmas, our sales to date have trended above plan since benefitting from both regular price merchandise selling and semi-annual sale performance. As expected, the holiday season was highly promotional and we were appropriately aggressive. Our fourth quarter margins are expected to remain within our range of expectations, our expenses continue to be very well managed, and our inventory levels are trending lower, or favorable, to our original expectations....We expect to finish fiscal 2022 with an operating margin rate in the high-single digits demonstrating the resilience of our model.”
- Shares down ~2% in Wednesday's premarket session and more than 35% over a period of one year.
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Victoria’s Secret approves new $250M share repurchase program and tightens Q4 outlook