Victoria's Secret Shares Slide On Worse-Than-Expected Q2 Sales, Gloomy Outlook

Victoria's Secret & Co VSCO reported second-quarter FY21 sales growth of 51.3% year-on-year, to $1.61 billion, missing the analyst consensus of $1.70 billion.
Victoria's Secret was recently separated from Bath & Body Works, Inc. BBWI (f/k/a L Brands, Inc).
North American stores sales increased 185.2% Y/Y, International sales rose 21.9%, while Direct sales fell 23.6%.
Gross profit rose 338.7% Y/Y to $669.6 million with a profit margin of 41.5%.
The operating margin was 12.6%, and operating income for the quarter was $202.7 million.
EPS of $1.71 beat the analyst consensus of $1.59.
"Following the finalization of the spin-off from L Brands, our momentum continues, fueled by strong fundamentals: inspiring merchandise she loves, our new brand positioning, and disciplined business operations," said CEO Martin Waters.
Outlook: Victoria's Secret sees Q3 FY21 sales growth in mid to high single digits.
The company expects Q3 FY21 EPS of $0.60 - $0.70 versus the consensus of $0.91.
Price Action: VSCO shares are trading lower by 8.63% at $65.5 in premarket on the last check Thursday.

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