Victoria's Secret Analysts Cut Their Forecasts After Q2 Results

Victoria's Secret & Co VSCO reported downbeat earnings results for its second quarter.

Revenue declined 6.2% Y/Y to $1.43 billion, missing the consensus of $1.44 billion. Adjusted EPS of $0.24 came below the street view of $0.26.

For the third quarter, the company expects net sales to decrease in the low- to mid-single digit range and adjusted EPS loss of $(0.70) to $(1.00) vs. consensus of $(0.14). For FY23, VSCO revised the FY23 outlook for revenue to decrease in the low-single digit range (from flat to down low-single digits earlier) and reiterated the adjusted operating margin outlook at 5%-6%.

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Victoria's Secret shares rose 7.5% to trade at $19.28 on Thursday.

These analysts made changes to their price targets on Victoria's Secret following earnings announcement.

• Wells Fargo cut the price target on Victoria's Secret from $34 to $18. Wells Fargo analyst Ike Boruchow downgraded the stock from Overweight to Equal-Weight.
• BMO Capital slashed the price target on Victoria's Secret from $25 to $23. BMO Capital analyst Simeon Siegel maintained an Outperform rating.
• B of A Securities cut the price target on Victoria's Secret from 30 to $25. B of A Securities analyst Lorraine Hutchinson maintained a Buy rating.

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