American Eagle Outfitters Inc. (NYSE:AEO) shares moved higher after the retailer announced it has entered into a $200 million accelerated share repurchase agreement.
The agreement with Bank of America will involve the repurchase of approximately 18.1 million shares, or about 9.5% of the company’s fully diluted outstanding stock.
The company said it plans to complete the accelerated share repurchase agreement with its existing share repurchase authorization of 68.5 million shares.
“We are pleased to announce an accelerated share repurchase program, which reflects our strong capital position and confidence in our long-term strategic growth plan,” American Eagle Outfitters CEO Jay Schottenstein said in a statement.
“This program, combined with our quarterly cash dividend, underscores our commitment to a balanced approach to capital allocation and delivering strong returns to shareholders.”
American Eagle stock had gained 5.6% at $11.68 on Monday morning.