If you are looking for a stock that has a solid history of beating earnings estimates and is in a good position to maintain the trend in its next quarterly report, you should consider Victoria's Secret (VSCO) . This company, which is in the Zacks Leisure and Recreation Products industry, shows potential for another earnings beat.When looking at the last two reports, this retailer of lingerie, pajamas and beauty products has recorded a strong streak of surpassing earnings estimates. The company has topped es ...

REYNOLDSBURG, Ohio, Nov. 13, 2024 (GLOBE NEWSWIRE) -- In conjunction with the Victoria’s Secret & Co. (NYSE: VSCO) third quarter 2024 earnings release, which will cross the wire after market close on Thursday, December 5th, you are invited to listen to a live webcast of the conference call on Friday, December 6th at 8:00 a.m. ET with Victoria’s Secret & Co. executives. What:Victoria’s Secret & Co. Third Quarter 2024 Earnings Conference Call WebcastWhen:8:00 a.m. ET on Friday, December 6th, 2024Where:https:/ ...

When a retailer falls, it falls quickly. Lauren Sherman and Chantal Fernandez are co-authors of Selling Sexy: Victoria's Secret and the Unraveling of an American Icon. In this podcast, they join Motley Fool host Mary Long to talk about topics including: What Les Wexner understood about American consumers. The new competition for Victoria's Secret. Lessons for retailers from Abercrombie & Fitch. To catch full episodes of all The Motley Fool's free podcasts, check out our podcast center. To get started invest ...

It was in May 2023 that we last discussed Victoria's Secret (NYSE: VSCO ). We discussed the company's rise and fall at the time, as well as the reasons we believe VSCO has the potential Our mission is to help investors to grow their fortune and enjoy investing along the way. Our approach is investing in companies making a difference and creating phenomenon value for human societies. We hedge our portfolio with short positions on companies failing to take care of their customers and utilize resources economi ...

Core Viewpoint - Victoria's Secret & Co. (VSCO) is currently trading at a significant discount compared to its industry peers, presenting a potential value opportunity for investors [1] Group 1: Stock Performance - VSCO has achieved a 30.9% gain over the past three months, outperforming the industry average of 22.8% and the S&P 500's 1.4% rise [2] - The stock is trading above its 50-day moving average, indicating upward momentum and price stability, reflecting growing investor confidence [3] Group 2: Leadership and Growth Strategy - The appointment of Hillary Super as CEO is seen as a potential catalyst for growth, with a focus on modernizing the brand and expanding its digital presence [4][5] - Investors are optimistic that the new CEO's vision will revitalize sales and enhance profitability through product innovation and alignment with consumer trends [5] Group 3: Sales and Product Innovation - Sales trends in North America have improved for four consecutive quarters, supported by strong performance in both physical stores and digital channels [6] - The launch of new products, such as the Victoria's Secret Dream bra collection and the Featherweight Max front-close bra, has contributed to sales momentum [6][8] - The beauty category remains the best-performing segment, showing year-over-year growth for the fourth straight quarter [8] Group 4: Traffic and Market Share - Increased store and digital traffic, with store traffic outperforming mall averages, is positively impacting the company's performance [9] - The digital market share in bras and panties has increased, with overall sports bra market share improving for the second consecutive quarter [9] Group 5: Financial Guidance - Victoria's Secret raised its 2024 sales forecast, expecting a decline of just 1% from previous lows, indicating optimism for continued sales improvement [10] - The company projects adjusted operating income for 2024 between $275 million and $300 million, and adjusted free cash flow of $200-$225 million [12] Group 6: Investment Opportunity - Analysts have revised earnings estimates upward, reflecting optimism about the company's growth, with current estimates at $1.98 per share and $2.14 for the next fiscal year [14] - The low P/E ratio and recent share performance suggest that this is an opportune time to invest in VSCO stock [15]

Victoria's Secret & Co. VSCO shares are trading higher on Wednesday. Barclays analyst Adrienne Yih upgraded Victoria's Secret to Equal Weight from Underweight and raised the price target to $25 from $23. The analyst writes that the company has moved past its most challenging period. Despite a significant loss of market share in recent years, VSCO still holds around 20% of the U.S. intimate market. The analyst says that they are more positive about the company due to the new management team's industry experi ...

Core Insights - Victoria's Secret has launched a new collection called VSX, which combines performance, comfort, and fashion, aimed at providing versatile styles for day-to-night wear [1][5] Product Details - The VSX collection features innovative styles including Sports Bras starting at $49.95, VSX Elevate™ Leggings from $69.95, and ready-to-wear apparel priced from $44.95, available in sizes XS-XXL and 32B-44DDD [4][3] - The collection emphasizes groundbreaking designs that redefine sportswear with a focus on comfort and style, utilizing advanced fabrics and refined contour designs [3][5] Marketing and Promotion - The campaign for VSX is led by renowned photographer Zoey Grossman and includes prominent models such as Gigi Hadid and Taylor Hill, showcasing the collection's dynamic designs [2][6] - Victoria's Secret has launched a dedicated Instagram handle, @VSXOfficial, to promote the brand's lifestyle and engage with the VSX sport community [4] Availability - The VSX collection became available online and in all Victoria's Secret stores on September 12, 2024, with plans for international availability to be announced [7]

Core Viewpoint - Victoria's Secret (VSCO) is currently recommended as a hold due to a negative macro outlook and elevated valuation multiples despite the appointment of a new CEO, Hillary Super, who brings relevant industry experience and expertise [2][6]. Financial Performance - VSCO reported a total sales decline of 0.7% year-over-year to approximately $1.42 billion, with North America store sales declining 2.1% year-over-year to $800 million and same-store sales growth (SSSG) declining 5% year-over-year [3]. - Direct sales fell 0.9% year-over-year to $430.2 million, while international sales grew 6.4% year-over-year to $187 million [3]. - Adjusted gross margin expanded by 80 basis points year-over-year to 35.4%, and adjusted EBIT margin expanded by 100 basis points to 4.4%, exceeding consensus estimates of 4.3% [3]. Management Changes - Hillary Super was appointed as the new CEO effective September 9, which is seen as a crucial change for VSCO, instilling confidence in a potential turnaround [3][4]. - Super's background includes experience at Savage X Fenty, a major competitor, and expertise in fashion retail merchandising from companies like Guess and Anthropologie [4]. Market Trends - Despite a negative sales performance in Q2 2024, there are signs of improving sales trends in North America for both Victoria's Secret and PINK brands, with management noting a strong exit from Q2 2024 and positive customer reactions to new products [4]. - Inventory levels have stabilized at approximately 16% of total revenue, allowing for increased production of new products in response to current demand [4]. Valuation Concerns - The current macroeconomic environment is challenging, with consumers remaining value-conscious, which has led to a loss of market share to value competitors [5]. - The stock has surged approximately 20% following the new CEO's appointment, trading at 11x forward PE, above the historical average of 8x over the past five years, indicating potential for downward re-rating if macro conditions do not improve [5]. Final Recommendation - The recommendation remains a hold for VSCO, as recent demand trends and the new CEO are positive, but the uncertain macroeconomic outlook warrants caution before making investment decisions [6].

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Financial Performance - In Q2 2024, operating income increased by $36 million to $62 million, with an operating income rate of 4.4%, up from 1.8% in Q2 2023[65]. - Net sales decreased by $10 million, or 1%, to $1.417 billion compared to $1.427 billion in Q2 2023, with comparable sales down 3%[65]. - Adjusted operating income for Q2 2024 was $62 million, compared to $49 million in Q2 2023[69]. - Reported net income per diluted share was $0.40 in Q2 2024, compared to a loss of $0.02 in Q2 2023[70]. - Gross profit for Q2 2024 increased by $14 million to $501 million, with a gross profit rate of 35.4%, up from 34.1% in Q2 2023[82]. - Year-to-date 2024 net sales decreased by $57 million, or 2%, to $2.777 billion compared to $2.834 billion in year-to-date 2023[87]. - Year-to-date gross profit increased by $14 million to $1.003 billion, with a gross profit rate of 36.1%, up from 34.9% in year-to-date 2023[88]. Sales and Store Performance - North American store sales decreased by 2%, or $17 million, to $800 million compared to $817 million in Q2 2023[65]. - Direct channel sales decreased by 1%, or $4 million, to $430 million compared to $434 million in Q2 2023[65]. - Sales per average selling square foot decreased by 1% to $137 in Q2 2024, while year-to-date sales per average store decreased by 3% to $1,804[73]. - North America net sales in Q2 2024 decreased by $17 million, or 2%, to $800 million, while international net sales increased by $11 million, or 6%, to $187 million[81]. - North America year-to-date net sales decreased by $74 million, or 5%, to $1.529 billion, while international net sales increased by $36 million, or 11%, to $369 million[87]. Expenses and Income - General, administrative, and store operating expenses decreased by $22 million, or 5%, to $439 million in Q2 2024[84]. - Interest expense for year-to-date 2024 decreased by $3 million to $43 million compared to year-to-date 2023[90]. - The effective tax rate for year-to-date 2024 was 35.9%, down from 62.0% in year-to-date 2023[92]. - Net cash provided by operating activities for year-to-date 2024 was $1 million, a decrease of $18 million compared to year-to-date 2023, primarily due to an increase in net income of $27 million[99]. Capital Expenditures and Debt - Capital expenditures for year-to-date 2024 were $99 million, with an estimated total of approximately $200 million for fiscal year 2024, focusing on store capital programs and technology investments[100][101]. - Total long-term debt as of August 3, 2024, was $1,119 million, a decrease from $1,270 million as of July 29, 2023[107]. - The company entered into a Term Loan B credit facility of $400 million, maturing in August 2028, with quarterly principal payments of 0.25% starting December 2021[108]. - The company has a senior secured asset-based revolving credit facility (ABL Facility) with commitments of $750 million, expiring in August 2026, and outstanding borrowings of $145 million as of August 3, 2024[110]. Cash Flow and Liquidity - Cash and cash equivalents at the end of the period on August 3, 2024, were $169 million, compared to $131 million at the end of year-to-date 2023[98]. - The company has $483 million available under the ABL Facility as of August 3, 2024, an increase from $254 million as of July 29, 2023[96]. - Net cash used for investing activities year-to-date 2024 was $83 million, compared to $143 million in year-to-date 2023[100][101]. - The company believes its available short-term and long-term capital resources are sufficient to fund working capital and cash flow requirements over the next 12 months[93]. Strategic Initiatives - The company continues to focus on three strategic priorities: Accelerate Our Core, Ignite Growth, and Transform the Foundation[65]. - The financial impact of the Adore Me acquisition included pre-tax income of $5 million in Q2 2024, compared to a pre-tax expense of $18 million in Q2 2023[70]. - The company expects to utilize cash flows to invest in brands, talent, and strategic initiatives while repaying indebtedness over time[93]. - The March 2024 Share Repurchase Program authorized the repurchase of up to $250 million of common stock, with no shares repurchased year-to-date 2024[104]. Compliance and Ratings - The company is in compliance with all covenants under its long-term debt and borrowing facilities as of August 3, 2024[110]. - The company's credit ratings as of August 3, 2024, include Ba3 from Moody's for corporate rating and Ba2 from Moody's for senior secured debt[111].