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published in Blogs
Aug 20, 2021
Victoria's Secret (VSCO, $69.07) beats Q2 earnings expectations; misses revenue forecast

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.

Related Tickers: VSCO