Victoria's Secret (VSCO, $69.07) beats Q2 earnings expectations; misses revenue forecast
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.
Momentum Indicator for VSCO turns positive, indicating new upward trend
VSCO saw its Momentum Indicator move above the 0 level on June 30, 2025. This is an indication that the stock could be shifting in to a new upward move. Traders may want to consider buying the stock or buying call options. Tickeron's A.I.dvisor looked at 56 similar instances where the indicator turned positive. In of the 56 cases, the stock moved higher in the following days. The odds of a move higher are at .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Moving Average Convergence Divergence (MACD) for VSCO just turned positive on July 02, 2025. Looking at past instances where VSCO's MACD turned positive, the stock continued to rise in of 27 cases 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 236 cases, the price rose further within the following month. The odds of a continued upward trend are .
Bearish Trend Analysis
The Stochastic Oscillator has been in the overbought zone for 2 days. Expect a price pull-back in the near future.
VSCO moved below its 50-day moving average on July 08, 2025 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for VSCO crossed bearishly below the 50-day moving average on June 23, 2025. This indicates that the trend has shifted lower and could be considered a sell signal. In of 10 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
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 July 02, 2025. 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 Aroon Indicator for VSCO entered a downward trend on June 25, 2025. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
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 Valuation Rating of (best 1 - 100 worst) indicates that the company is fair valued 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: P/B Ratio (3.447) is normal, around the industry mean (3.964). P/E Ratio (13.331) is within average values for comparable stocks, (110.742). VSCO's Projected Growth (PEG Ratio) (0.000) is very low in comparison to the industry average of (1.444). VSCO has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.028). P/S Ratio (0.237) is also within normal values, averaging (1.139).
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. VSCO’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average 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 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 77, placing this stock worse than average.
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