Victoria’s Secret & Co. VSCO raised its fourth-quarter sales and profit guidance on Tuesday to reflect a successful holiday season during a “challenging” economic environment for its customers. The company said it now expects EPS to range from $2.25 to $2.35, compared with prior guidance of $2.05 to $2.25. It expects sales to fall 7% to 8%, better than prior guidance for a high-single digit decline. “Our sales performance was at the better end of our guidance with margins solidly in line with our expectations despite our response to a very promotional environment during the holiday season,” CEO Martin Waters said in a statement. “With diligent focus, we accomplished this outcome and will end the year with inventory levels down low double digits when accounting for modal mix shifts, and expect an expense outcome at the better end of our range.” The company offered the upbeat outlook while announcing plans for a $125 million accelerated share buyback with Goldman Sachs. The stock was not active premarket but has fallen 31% in the last 12 months, while the S&P 500SPX has fallen 11%.
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