Victoria's Secret (VSCO) To Report Earnings Tomorrow: Here Is What To Expect

Adam Hejl /
2024/06/04 3:00 am EDT

Intimatewear and beauty retailer Victoria’s Secret (NYSE:VSCO) will be announcing earnings results tomorrow after market hours. Here's what to expect.

Victoria's Secret met analysts' revenue expectations last quarter, reporting revenues of $2.08 billion, up 3% year on year. It was a mixed quarter for the company. While same store sales missed, gross margin outperformed and led to a narrow EPS beat vs Wall Street's estimates. On the other hand, its full-year revenue and operating income guidance missed analysts' expectations, with the latter quite a large amount below expectations.

Is Victoria's Secret a buy or sell going into earnings? Read our full analysis here, it's free.

This quarter, analysts are expecting Victoria's Secret's revenue to decline 3.4% year on year to $1.36 billion, improving from the 5.2% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.12 per share.

Victoria's Secret Total Revenue

Heading into earnings, analysts covering the company have grown increasingly bullish with revenue estimates seeing 7 upward revisions over the last 30 days. Victoria's Secret has missed Wall Street's revenue estimates six times over the last two years.

Looking at Victoria's Secret's peers in the apparel retailer segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Gap delivered year-on-year revenue growth of 3.4%, beating analysts' expectations by 3.1%, and Abercrombie and Fitch reported revenues up 22.1%, topping estimates by 5.8%. Gap traded up 29.3% following the results while Abercrombie and Fitch was also up 17.1%.

Read our full analysis of Gap's results here and Abercrombie and Fitch's results here.

There has been positive sentiment among investors in the apparel retailer segment, with share prices up 11.5% on average over the last month. Victoria's Secret is up 29.6% during the same time and is heading into earnings with an average analyst price target of $18.8 (compared to the current share price of $23.32).

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