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.
VSCO in downward trend: price dove below 50-day moving average on January 08, 2025
VSCO moved below its 50-day moving average on January 08, 2025 date and that indicates a change from an upward trend to a downward trend. In of 23 similar past instances, the stock price decreased further within the following month. The odds of a continued downward trend are .
Technical Analysis (Indicators)
Bearish Trend Analysis
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 .
Bullish Trend Analysis
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 12 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where VSCO advanced for three days, in of 210 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 129 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 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 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 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 75, placing this stock worse than average.
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Industry ApparelFootwearRetail