BBRC International purchases $10.8 million in Victoria’s Secret stock

Published 01/04/2025, 21:18
BBRC International purchases $10.8 million in Victoria’s Secret stock

BBRC International PTE Ltd, a significant shareholder in Victoria’s Secret & Co. (NYSE:VSCO), has increased its stake in the company. According to a recent SEC filing, BBRC acquired 584,000 shares of the retailer’s common stock on March 28, 2025. The shares were purchased at a weighted average price of $18.4828, amounting to a total transaction value of approximately $10.8 million.

The purchase was made in multiple transactions with prices ranging from $18.155 to $19.39 per share. Following this acquisition, BBRC International now holds 10,098,131 shares of Victoria’s Secret. BBRC’s ownership is through its role as trustee for the BB Family International Trust and BBFIT Investments Pte Ltd, with Brett Blundy, Managing Director, signing off on the transaction. The company maintains a healthy gross profit margin of 44.9% and generated $247 million in levered free cash flow over the past twelve months. For deeper insights into Victoria’s Secret’s financial health and valuation metrics, including 10 key ProTips, check out the comprehensive analysis available on InvestingPro.

In other recent news, Victoria’s Secret & Co. reported its fourth-quarter 2025 financial results, exceeding Wall Street expectations with an earnings per share of $2.60, compared to the forecasted $2.27. The company’s revenue also surpassed predictions, reaching $2.11 billion against an anticipated $2.09 billion. Despite these positive results, UBS and TD Cowen analysts revised their stock price targets for Victoria’s Secret, lowering them to $25 and $22.50, respectively, while maintaining neutral and hold ratings on the stock. S&P Global Ratings revised its outlook on Victoria’s Secret to stable from negative, citing improved operating performance and deleveraging, with a noted increase in net sales by 1% during the fourth quarter of 2024.

Victoria’s Secret has also announced a significant deceleration in sales growth for the first quarter of 2025, with projections indicating a 2% to 4% decline. Analysts have expressed concerns about potential challenges, including adverse weather conditions and tariffs, which may impact the company’s recovery progress. However, the company’s strategic initiatives, particularly around the PINK brand, are expected to contribute to modest market share gains. Victoria’s Secret plans to continue expanding its international presence and has set a full-year revenue guidance of $6.2 to $6.3 billion, with expectations for low single-digit growth for the remainder of the year.

The company is focused on product innovation and operational efficiency to drive future growth. Victoria’s Secret expects to maintain adequate liquidity, supported by full availability under its ABL facility and positive free operating cash flow generation. The company also plans to open between 13 and 53 new consolidated stores for fiscal 2025, primarily through partner-operated stores, and anticipates utilizing a portion of its cash for share repurchases.

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