Victoria's Secret stock surges after announced $250 million ASR agreement

victoria's-secret-stock-surges-after-announced-$250-million-asr-agreement

Shares of Victoria’s Secret & Co. VSCO, -0.25% rallied 7.0% in premarket trading Wednesday, after the underwear and apparel seller announced a $250 million accelerated share repurchase (ASR) agreement. Based on Tuesday’s stock closing price of $48.58, the ASR could represent 5.15 million shares, or about 5.8% of the shares outstanding. Separately, the company affirmed the fourth-quarter guidance it provided last month, for sales to be flat to up 3% from a year ago and earnings per share of $2.35 to $2.65. The FactSet revenue consensus of $2.14 billion implied growth of 2.0% and the EPS consensus is $2.63. “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,” said Chief Executive Martin Waters. “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.” The stock has shed 14.0% over the past three months while the S&P 500 SPX, -0.10% has gained 9.8%.

Source: Marketwatch

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