Intimatewear and beauty retailer Victoria’s Secret (NYSE:VSCO) will be reporting earnings tomorrow after market close. Here’s what investors should know.
Victoria's Secret beat analysts’ revenue expectations by 4.6% last quarter, reporting revenues of $1.35 billion, up 6.5% year on year. It was an exceptional quarter for the company, with a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ EPS estimates.
Is Victoria's Secret a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Victoria's Secret’s revenue to be flat year on year at $2.08 billion, slowing from the 3% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.30 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Victoria's Secret has missed Wall Street’s revenue estimates three times over the last two years.
Looking at Victoria's Secret’s peers in the apparel and footwear retail segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Urban Outfitters delivered year-on-year revenue growth of 9.4%, meeting analysts’ expectations, and Boot Barn reported revenues up 16.9%, in line with consensus estimates. Urban Outfitters traded up 8.1% following the results while Boot Barn was down 7.9%.
Read our full analysis of Urban Outfitters’s results here and Boot Barn’s results here.
Inflation has progressed towards the Fed’s 2% goal as of late, leading to strong stock market performance. Recent rate cuts and the 2024 Presidential election's conclusion added further sparks to the market, and while some of the apparel and footwear retail stocks have shown solid performance, the group has generally underperformed, with share prices down 10.4% on average over the last month. Victoria's Secret is down 31.6% during the same time and is heading into earnings with an average analyst price target of $40.86 (compared to the current share price of $23.52).
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