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Victoria’s Secret (VSCO) stock climbs 15% on repurchase plan

By William Hoffman

20:52, 29 December 2021

Victoria's Secret store in Toronto, Ontario, Canada
Victoria’s Secret stock on the rise - Photo: Victoria’s Secret

Victoria’s Secret stock was up as much as 15.2% on Wednesday after the American lingerie company reaffirmed its fourth quarter guidance and accelerated its share repurchase programme.

Sales from the holiday season between Thanksgiving and Christmas were encouraging and is prompting the company to announce its first ever share repurchase, CEO Martin Waters said in a press release.

The stock climbed as high as $55.97 per share up from the prior day’s close at $48.58 per share. However, by the end of the day, the stock had settled at around $54.94 per share for a 13% gain on the day. The company’s stock is up 29% year to date.

Financial guidance

With holiday sales in the rear-view mirror, Victoria’s Secret is reaffirming the fourth quarter guidance it set back on 17 November.


0.51 Price
-2.530% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 0.00400


26,975.10 Price
-2.760% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 60.00


1,971.30 Price
+0.550% 1D Chg, %
Long position overnight fee -0.0183%
Short position overnight fee 0.0101%
Overnight fee time 21:00 (UTC)
Spread 0.30

Oil - Crude

68.65 Price
-1.010% 1D Chg, %
Long position overnight fee -0.0157%
Short position overnight fee -0.0063%
Overnight fee time 21:00 (UTC)
Spread 0.03

Sales are expected to be flat to up 3% versus last year’s fourth quarter sales of $2.1bn (£1.55bn), according to the press release. Additionally, operating income is expected to come in at a range of $295m–$335m and diluted earnings per share to be in a range of $2.35–$2.65.

The accelerated repurchase agreement is for $250m of Victoria Secret common stock. The company will give the funds to Goldman Sachs, which will deliver 4.1 million shares on 31 December. The remainder of the repurchases will be made in the first quarter of 2022, according to the release.

“Over the past few months, we have stabilised our business and created a platform for future growth while generating significant cash flow,” Waters said in the press release. “We believe this share repurchase reflects our confidence in the company and is another step on our journey to create long-term, sustainable value for our shareholders.”

Read more: Victoria Secret’s (VSCO) sales up despite by shipping backlogs

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The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
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