Victoria's Secret (NYSE:VSCO) is preparing to release its quarterly earnings on Thursday, 2024-12-05. Here's a brief overview of what investors should keep in mind before the announcement.
Analysts expect Victoria's Secret to report an earnings per share (EPS) of $-0.69.
Anticipation surrounds Victoria's Secret's announcement, with investors hoping to hear about both surpassing estimates and receiving positive guidance for the next quarter.
New investors should understand that while earnings performance is important, market reactions are often driven by guidance.
Historical Earnings Performance
Last quarter the company beat EPS by $0.04, which was followed by a 3.7% drop in the share price the next day.
Here's a look at Victoria's Secret's past performance and the resulting price change:
| Quarter | Q2 2024 | Q1 2024 | Q4 2023 | Q3 2023 |
|---|---|---|---|---|
| EPS Estimate | 0.36 | -0.01 | 2.47 | -0.78 |
| EPS Actual | 0.40 | 0.12 | 2.58 | -0.86 |
| Price Change % | -4.0% | -6.0% | -30.0% | 14.000000000000002% |
Victoria's Secret Share Price Analysis
Shares of Victoria's Secret were trading at $41.9 as of December 03. Over the last 52-week period, shares are up 57.46%. Given that these returns are generally positive, long-term shareholders should be satisfied going into this earnings release.
Analysts' Perspectives on Victoria's Secret
Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on Victoria's Secret.
The consensus rating for Victoria's Secret is Neutral, derived from 6 analyst ratings. An average one-year price target of $33.0 implies a potential 21.24% downside.
Peer Ratings Comparison
The below comparison of the analyst ratings and average 1-year price targets of American Eagle Outfitters, Buckle and Revolve Gr, three prominent players in the industry, gives insights for their relative performance expectations and market positioning.
- For American Eagle Outfitters, analysts project an Neutral trajectory, with an average 1-year price target of $21.67, indicating a potential 48.28% downside.
- The consensus among analysts is an Neutral trajectory for Buckle, with an average 1-year price target of $46.0, indicating a potential 9.79% upside.
- For Revolve Gr, analysts project an Neutral trajectory, with an average 1-year price target of $29.75, indicating a potential 29.0% downside.
Insights: Peer Analysis
The peer analysis summary provides a snapshot of key metrics for American Eagle Outfitters, Buckle and Revolve Gr, illuminating their respective standings within the industry. These metrics offer valuable insights into their market positions and comparative performance.
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|---|---|---|---|---|
| Victoria's Secret | Neutral | -0.70% | $501M | 7.15% |
| American Eagle Outfitters | Neutral | 7.51% | $498.90M | 4.48% |
| Buckle | Neutral | 3.98% | $132.53M | 9.33% |
| Revolve Gr | Neutral | 9.92% | $144.87M | 2.66% |
Key Takeaway:
Victoria's Secret ranks at the bottom for Revenue Growth among its peers. It is in the middle for Gross Profit. For Return on Equity, it is at the top.
Delving into Victoria's Secret's Background
Victoria's Secret & Co is a specialty retailer of lingerie, pajamas, and beauty products with prestige fragrances and body care. It serves customers at its Lingerie and Beauty stores around the globe and online enabling them to shop the brand anywhere and anytime. The Company operates as a single segment designed to serve customers worldwide seamlessly through stores and online channels.
Victoria's Secret: Delving into Financials
Market Capitalization: Indicating a reduced size compared to industry averages, the company's market capitalization poses unique challenges.
Negative Revenue Trend: Examining Victoria's Secret's financials over 3 months reveals challenges. As of 31 July, 2024, the company experienced a decline of approximately -0.7% in revenue growth, reflecting a decrease in top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Consumer Discretionary sector.
Net Margin: The company's net margin is below industry benchmarks, signaling potential difficulties in achieving strong profitability. With a net margin of 2.26%, the company may need to address challenges in effective cost control.
Return on Equity (ROE): Victoria's Secret's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 7.15% ROE, the company effectively utilizes shareholder equity capital.
Return on Assets (ROA): Victoria's Secret's ROA is below industry standards, pointing towards difficulties in efficiently utilizing assets. With an ROA of 0.71%, the company may encounter challenges in delivering satisfactory returns from its assets.
Debt Management: Victoria's Secret's debt-to-equity ratio surpasses industry norms, standing at 5.95. This suggests the company carries a substantial amount of debt, posing potential financial challenges.
To track all earnings releases for Victoria's Secret visit their earnings calendar on our site.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
