Victoria's Secret Lifts FY24 Guidance After Strong Q3: Sees Holiday Momentum
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 06 2024
0mins
Source: Benzinga
Strong Financial Performance: Victoria's Secret & Co. reported a 7% year-over-year revenue increase to $1.347 billion, surpassing expectations, with notable growth in both North America and international markets. The adjusted operating loss improved significantly from the previous year.
Positive Outlook: For the fourth quarter, the company anticipates net sales growth of 2%-4% and has revised its full-year projections upward, indicating confidence in continued momentum through the holiday season.
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Analyst Views on VSCO
Wall Street analysts forecast VSCO stock price to fall
11 Analyst Rating
4 Buy
7 Hold
0 Sell
Moderate Buy
Current: 54.300
Low
29.00
Averages
53.40
High
73.00
Current: 54.300
Low
29.00
Averages
53.40
High
73.00
About VSCO
Victoria's Secret & Co. is a specialty retailer of women's intimate and other apparel and beauty products marketed under the Victoria's Secret, PINK, and Adore Me brand names. The Company offers a range of products including bras, panties, lingerie, casual sleepwear, apparel, sport and swim, as well as prestige fragrances and body care. Victoria’s Secret brand offers bras, panties, lingerie, casual sleepwear, swim, lounge and sport, as well as fragrances and body care. PINK is a lifestyle brand for young women providing variety of collections and heritage pieces, including apparel, loungewear, activewear, bras, panties, accessories, beauty, and others. Adore Me is a direct-to-consumer lingerie and apparel brand that is focused on serving women of all sizes and budgets.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Victoria's Secret Reports Strong Growth in 2026 Earnings
- Sales Performance Surge: Victoria's Secret reported $1.56 billion in sales for Q1 2026, a 15% increase year-over-year, with same-store sales rising 13%, indicating strong brand performance and sustained customer demand in the market.
- Significant Profit Growth: Adjusted operating income soared 153% to $80 million, while adjusted EPS increased over 500% to $0.60, reflecting the company's success in cost control and sales strategies, thereby boosting investor confidence.
- Strong International Market Results: International sales grew by 45%, particularly strong in China, demonstrating effective execution of the company's global expansion strategy and further solidifying its competitive position in international markets.
- Optimistic Future Outlook: The company raised its 2026 net sales guidance to $7.03 billion to $7.13 billion and adjusted operating income guidance to $550 million to $580 million, indicating management's confidence in future growth and positive market potential.
See More
Tech Rally Drives S&P 500 to New Records
- Executive Interview: Goldman Sachs CEO David Solomon will be interviewed during the 'Halftime Report' at the Economic Club of New York, where he is expected to discuss future strategies and market outlook, potentially influencing investor confidence.
- Stock Performance: Goldman Sachs shares have gained 5% in the past week and 13% in the past month, hitting a new high on Monday, indicating strong market demand and investor confidence in financial stocks.
- Competitor Dynamics: Cisco Systems' stock has surged 52% over the past three months, reaching a new high on Monday, showcasing its strong market performance, which may pressure other tech stocks.
- Market Trends: Despite the S&P Financials sector declining by 1% over the past week and month, the overall market remains strong, driven by tech stocks, reflecting investor optimism in the technology sector.
See More
Victoria's Secret Set to Release Q1 Earnings on June 2
- Earnings Announcement: Victoria's Secret is set to announce its Q1 2023 earnings on June 2 before market open, with consensus EPS estimates at $0.32, reflecting a substantial year-over-year increase of 255.6%, indicating a significant improvement in profitability that could positively impact stock prices.
- Strong Revenue Expectations: The expected revenue for Q1 is $1.52 billion, representing a 12.6% year-over-year growth, which underscores sustained consumer demand for the brand and further solidifies the company's competitive position in the market.
- Outstanding Historical Performance: Over the past two years, Victoria's Secret has exceeded EPS estimates 100% of the time and revenue estimates 88% of the time, enhancing investor confidence and potentially driving stock price increases due to this consistent performance.
- Positive Revision Trends: In the last three months, EPS estimates have seen eight upward revisions with no downward adjustments, and revenue estimates have experienced seven upward revisions, indicating analysts' optimistic outlook on the company's future performance, which may attract more investor interest.
See More
Billionaire Investor David Einhorn Expands Consumer Stock Portfolio
- Victoria's Secret Increase: David Einhorn raised his stake in Victoria's Secret by 30% in Q1, making it his eighth-largest position, reflecting confidence in the new management's efforts to reshape the brand and suggesting strong growth potential ahead.
- Crocs Brand Challenges: Einhorn's new investment in Crocs shows steady international sales, but ongoing inventory issues with the HeyDude brand pose challenges; if the company stabilizes this brand, significant upside potential exists for the stock.
- Deckers Outdoor Stake Increase: Einhorn increased his stake in Deckers Outdoor by over 60%, and despite concerns about waning brand popularity, the company's strong revenue growth history positions it as a potential bargain buy given its low valuation.
- Peloton's Strategic Shift: Einhorn's stake in Peloton surged by over 4,000%, and while the company has faced declining revenues for four years, its improved gross margin and focus on the commercial gym market could lead to substantial stock price recovery if revenue growth resumes.
See More
Victoria's Secret Returns to Roots Amidst Investor Interest
- Victoria's Secret Revival: Billionaire investor David Einhorn increased his stake in Victoria's Secret by 30% in Q1, noting that new management is restoring the brand's identity, resonating well with customers and stabilizing traffic, indicating strong growth potential ahead.
- Crocs Brand Challenges: Einhorn's investment in Crocs comes despite the underperformance of its HeyDude brand since its 2022 acquisition; however, the company reported an 8% increase in direct-to-consumer sales last quarter and raised its full-year sales forecast, suggesting a potential rebound opportunity.
- Increased Stake in Deckers Outdoor: Einhorn raised his stake in Deckers Outdoor by over 60%, and while concerns linger about the waning popularity of its Ugg brand, the company continues to generate strong revenue growth from its main brands, indicating solid profitability prospects.
- Peloton Margin Improvement: Peloton faced significant challenges post-pandemic, yet despite stagnant revenue growth, its gross margin has returned to pre-pandemic levels, and with plans to launch a new commercial product line and a partnership with Spotify, the company shows potential for future growth.
See More
BBRC Urges Shareholders to Vote Against Chair Donna James
- Shareholder Voting Call: BBRC International PTE Limited, a long-term shareholder owning approximately 13% of Victoria's Secret, urges shareholders to vote against Chair Donna James at the June 11 annual meeting, citing her 25 years of poor decision-making that necessitated the company's turnaround.
- Board Performance Critique: BBRC highlights the board's failure to adequately address past mistakes, particularly in the slow response to CEO changes and capital allocation, which resulted in significant declines in net income and operating income from FY2021 to FY2025.
- Acknowledgment of Turnaround Progress: While BBRC recognizes the turnaround initiated under new CEO Hillary Super, it argues that James's leadership record should not be overlooked, asserting that her continued tenure could hinder the success of the turnaround efforts.
- Capital Allocation Missteps: BBRC criticizes the board's decisions regarding capital allocation, pointing out the failure to repurchase shares during periods of depressed stock prices, which has harmed shareholder value, emphasizing the need for new leadership to ensure more effective future capital decisions.
See More
Victoria's Secret Reports Strong Growth in 2026 Earnings
- Sales Performance Surge: Victoria's Secret reported $1.56 billion in sales for Q1 2026, a 15% increase year-over-year, with same-store sales rising 13%, indicating strong brand performance and sustained customer demand in the market.
- Significant Profit Growth: Adjusted operating income soared 153% to $80 million, while adjusted EPS increased over 500% to $0.60, reflecting the company's success in cost control and sales strategies, thereby boosting investor confidence.
- Strong International Market Results: International sales grew by 45%, particularly strong in China, demonstrating effective execution of the company's global expansion strategy and further solidifying its competitive position in international markets.
- Optimistic Future Outlook: The company raised its 2026 net sales guidance to $7.03 billion to $7.13 billion and adjusted operating income guidance to $550 million to $580 million, indicating management's confidence in future growth and positive market potential.
See More
Tech Rally Drives S&P 500 to New Records
- Executive Interview: Goldman Sachs CEO David Solomon will be interviewed during the 'Halftime Report' at the Economic Club of New York, where he is expected to discuss future strategies and market outlook, potentially influencing investor confidence.
- Stock Performance: Goldman Sachs shares have gained 5% in the past week and 13% in the past month, hitting a new high on Monday, indicating strong market demand and investor confidence in financial stocks.
- Competitor Dynamics: Cisco Systems' stock has surged 52% over the past three months, reaching a new high on Monday, showcasing its strong market performance, which may pressure other tech stocks.
- Market Trends: Despite the S&P Financials sector declining by 1% over the past week and month, the overall market remains strong, driven by tech stocks, reflecting investor optimism in the technology sector.
See More
Victoria's Secret Set to Release Q1 Earnings on June 2
- Earnings Announcement: Victoria's Secret is set to announce its Q1 2023 earnings on June 2 before market open, with consensus EPS estimates at $0.32, reflecting a substantial year-over-year increase of 255.6%, indicating a significant improvement in profitability that could positively impact stock prices.
- Strong Revenue Expectations: The expected revenue for Q1 is $1.52 billion, representing a 12.6% year-over-year growth, which underscores sustained consumer demand for the brand and further solidifies the company's competitive position in the market.
- Outstanding Historical Performance: Over the past two years, Victoria's Secret has exceeded EPS estimates 100% of the time and revenue estimates 88% of the time, enhancing investor confidence and potentially driving stock price increases due to this consistent performance.
- Positive Revision Trends: In the last three months, EPS estimates have seen eight upward revisions with no downward adjustments, and revenue estimates have experienced seven upward revisions, indicating analysts' optimistic outlook on the company's future performance, which may attract more investor interest.
See More
Billionaire Investor David Einhorn Expands Consumer Stock Portfolio
- Victoria's Secret Increase: David Einhorn raised his stake in Victoria's Secret by 30% in Q1, making it his eighth-largest position, reflecting confidence in the new management's efforts to reshape the brand and suggesting strong growth potential ahead.
- Crocs Brand Challenges: Einhorn's new investment in Crocs shows steady international sales, but ongoing inventory issues with the HeyDude brand pose challenges; if the company stabilizes this brand, significant upside potential exists for the stock.
- Deckers Outdoor Stake Increase: Einhorn increased his stake in Deckers Outdoor by over 60%, and despite concerns about waning brand popularity, the company's strong revenue growth history positions it as a potential bargain buy given its low valuation.
- Peloton's Strategic Shift: Einhorn's stake in Peloton surged by over 4,000%, and while the company has faced declining revenues for four years, its improved gross margin and focus on the commercial gym market could lead to substantial stock price recovery if revenue growth resumes.
See More
Victoria's Secret Returns to Roots Amidst Investor Interest
- Victoria's Secret Revival: Billionaire investor David Einhorn increased his stake in Victoria's Secret by 30% in Q1, noting that new management is restoring the brand's identity, resonating well with customers and stabilizing traffic, indicating strong growth potential ahead.
- Crocs Brand Challenges: Einhorn's investment in Crocs comes despite the underperformance of its HeyDude brand since its 2022 acquisition; however, the company reported an 8% increase in direct-to-consumer sales last quarter and raised its full-year sales forecast, suggesting a potential rebound opportunity.
- Increased Stake in Deckers Outdoor: Einhorn raised his stake in Deckers Outdoor by over 60%, and while concerns linger about the waning popularity of its Ugg brand, the company continues to generate strong revenue growth from its main brands, indicating solid profitability prospects.
- Peloton Margin Improvement: Peloton faced significant challenges post-pandemic, yet despite stagnant revenue growth, its gross margin has returned to pre-pandemic levels, and with plans to launch a new commercial product line and a partnership with Spotify, the company shows potential for future growth.
See More
BBRC Urges Shareholders to Vote Against Chair Donna James
- Shareholder Voting Call: BBRC International PTE Limited, a long-term shareholder owning approximately 13% of Victoria's Secret, urges shareholders to vote against Chair Donna James at the June 11 annual meeting, citing her 25 years of poor decision-making that necessitated the company's turnaround.
- Board Performance Critique: BBRC highlights the board's failure to adequately address past mistakes, particularly in the slow response to CEO changes and capital allocation, which resulted in significant declines in net income and operating income from FY2021 to FY2025.
- Acknowledgment of Turnaround Progress: While BBRC recognizes the turnaround initiated under new CEO Hillary Super, it argues that James's leadership record should not be overlooked, asserting that her continued tenure could hinder the success of the turnaround efforts.
- Capital Allocation Missteps: BBRC criticizes the board's decisions regarding capital allocation, pointing out the failure to repurchase shares during periods of depressed stock prices, which has harmed shareholder value, emphasizing the need for new leadership to ensure more effective future capital decisions.
See More
