Victoria’s Secret & Co. ( NYSE: VSCO ) announced that it plans to enter into an accelerated share repurchase agreement with Goldman Sachs to repurchase $125M worth of the retailer's common stock. of the Company’s common stock.
Under the terms of the accelerated share repurchase, Victoria's Secret will make an initial payment of $125M to Goldman Sachs and will receive an initial delivery of approximately 2.5M n shares of common stock on February 3. The final number of shares to be repurchased will be based on the volume-weighted average price of the VSCO stock during the term of the ASR less a discount and subject to adjustments pursuant to the terms of the ASR.
Victoria's Secret also issued Q4 guidance. The company is now forecasting operating income in the range of $265M to $275M vs. prior guidance of $245M to $265M. Net income for the quarter is expected to be $2.25 to $2.35 vs. $2.05 to $2.25 prior view and the consensus mark of $2.24. Q4 sales are forecast to drop 7% to 8% during the quarter.
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Victoria's Secret enters accelerated share buyback program, updates guidance