Victoria’s Secret reported fiscal-second-quarter earnings that surpassed analysts’ expectations. They also marked a turnaround from the year-ago quarter’s loss. Revenue, however, misses analysts' forecasts.
For the quarter ended July 31, the lingerie retailer company’s earnings came in at $1.71 a share compared with a loss of -$2.26 a share in the year-ago quarter. Analysts polled by FactSet expected $1.59 a share.
Revenue of $1.61 billion fell short of analysts’ estimate of $1.69 billion. The figure was higher than the year-ago period’s $1.07 billion as most of Victoria's Secret stores were closed last year due to the pandemic.
“With tighter inventory management and more emotionally appealing product, we are less promotional, resulting in significant margin increases,” Chief Executive Martin Waters said in a statement.
For fiscal-third-quarter, Victoria’s Secret projects earnings per share in the range of 60 cents to 70 cents a share – compared to 93 cents a share expected by analysts polled by FactSet.
The company expects sales to increase in the mid- to high-single-digits percent from the year-earlier $1.35 billion. FactSet's survey was looking for $1.51 billion of revenue.
The Stochastic Oscillator for VSCO moved out of overbought territory on February 21, 2024. This could be a bearish sign for the stock and investors may want to consider selling or taking a defensive position. A.I.dvisor looked at 25 similar instances where the indicator exited the overbought zone. In of the 25 cases the stock moved lower. This puts the odds of a downward move at .
The 10-day RSI Indicator for VSCO moved out of overbought territory on February 13, 2024. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 15 similar instances where the indicator moved out of overbought territory. In of the 15 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where VSCO declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
VSCO broke above its upper Bollinger Band on February 09, 2024. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Momentum Indicator moved above the 0 level on January 24, 2024. You may want to consider a long position or call options on VSCO as a result. In of 33 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for VSCO just turned positive on January 26, 2024. Looking at past instances where VSCO's MACD turned positive, the stock continued to rise in of 19 cases over the following month. The odds of a continued upward trend are .
VSCO moved above its 50-day moving average on January 25, 2024 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for VSCO crossed bullishly above the 50-day moving average on February 01, 2024. This indicates that the trend has shifted higher and could be considered a buy signal. In of 7 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where VSCO advanced for three days, in of 142 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 88 cases where VSCO Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. VSCO’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: VSCO's P/B Ratio (10.194) is slightly higher than the industry average of (3.973). P/E Ratio (25.404) is within average values for comparable stocks, (102.673). VSCO's Projected Growth (PEG Ratio) (0.000) is very low in comparison to the industry average of (1.328). VSCO has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.031). P/S Ratio (0.373) is also within normal values, averaging (2.037).
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. VSCO’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 75, placing this stock worse than average.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
A.I.dvisor indicates that over the last year, VSCO has been loosely correlated with DBI. These tickers have moved in lockstep 55% of the time. This A.I.-generated data suggests there is some statistical probability that if VSCO jumps, then DBI could also see price increases.