Lingerie-seller Victoria’s Secret (VSCO) is taking back ownership of $250m worth of its own shares through an announced buyback, with the help of Goldman Sachs (GS). The company said that it would be undertaking an accelerated share repurchase program and receive 4.1 million on December 31, with the whole set of stock expected to be bought back by the end of Q1 2022.
The buyback is most likely a move by the company to revamp its image and take control after years of decreasing sales and becoming out-of-touch with its target demographic of women. It recently split from its parent company, L Brands, and since then has been overhauling its image through the use of more diverse body types in its advertising and expanding into other clothing such as shapewear. The CEO expects the repurchase plan to stabilize the company and allow for future growth.
Why it matters
Investors seem to be happy with this all-new Victoria’s Secret as its shares soared by 15% after the announcement. Not to mention, recent sales figures show a rebound during this Christmas season.