Victoria's Secret, a renowned lingerie, clothing, and beauty retailer, has announced plans to repurchase $250 million of its company shares. The Board of Directors unanimously approved the new share repurchase program, known as the "January 2023 Share Repurchase Program," on January 11, 2023.
This program will commence once the current $250 million share repurchase program is exhausted, which is expected to happen by the end of January 2023. The shares repurchased under the January 2023 Share Repurchase Program will be made in the open market, subject to market conditions and other factors.
These shares will be available to meet obligations under equity compensation plans and for general corporate purposes. The program will continue until exhausted, but no later than the end of the fiscal year 2023. In addition to the share repurchase program, Victoria's Secret has also entered into an accelerated share repurchase agreement (ASR) with Goldman Sachs & Co. LLC to repurchase $125 million of the company's common stock.
Under the terms of the ASR, the company will make an initial payment of $125 million to Goldman Sachs and receive an initial delivery of approximately 2.5 million shares of the company's common stock on February 3, 2023.
The final settlement of the ASR is expected to be completed in the second quarter of 2023. Victoria's Secret has experienced significant growth in recent years, acquiring Adore Me, a technology-led, digital-first innovative intimates brand, and expanding its international business.
The company currently operates approximately 1,350 retail stores in around 70 countries, employing more than 30,000 associates worldwide. The new share repurchase program reflects the company's confidence in its future growth and commitment to creating long-term, sustainable value for its shareholders.
