Victoria's Secret Narrows Q4 EPS Outlook; Adopts $250M Stock Buyback Program

Victoria's Secret & Co VSCO has narrowed its fourth-quarter FY22 EPS guidance from $2.00 - $2.45 to $2.05 - $2.25 (consensus $2.34).
It expects Q4 operating income of $245 million - $265 million (previously $240 million - $290 million).
The company reaffirmed the sales guidance provided on November 30, 2022, which forecasted a net sales decline in the high-single digit range compared to last year's $2.175 billion.
Buyback: Victoria's Secret said its Board of Directors unanimously approved a new share repurchase program of up to $250 million of the company's shares.
Shares repurchased under the program will be made in the open market, subject to market conditions and other factors.
The January 2023 share repurchase program is eligible to begin upon exhaustion of the current $250 million share repurchase program which is scheduled to be completed by the end of January 2023.
The January 2023 share repurchase program will continue until exhausted, but no later than the end of fiscal year 2023.
"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," said CEO Martin Waters.
Also Read: Why Victoria's Secret Could Miss Consensus Estimates By 38%: Analyst
Price Action: VSCO shares are trading higher by 5.62% at $36.19 on the last check Wednesday.
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