Victoria's Secret (VSCO) Reports Q3 Loss, Tops Revenue Estimates

Core Insights - Victoria's Secret reported a quarterly loss of $0.50 per share, better than the Zacks Consensus Estimate of a loss of $0.64, and an improvement from a loss of $0.86 per share a year ago, resulting in an earnings surprise of 21.88% [1] - The company achieved revenues of $1.35 billion for the quarter ended October 2024, exceeding the Zacks Consensus Estimate by 4.55% and showing growth from $1.27 billion year-over-year [2] - Victoria's Secret shares have increased by approximately 65.4% since the beginning of the year, outperforming the S&P 500's gain of 27.6% [3] Earnings Outlook - The earnings outlook for Victoria's Secret is favorable, with current consensus EPS estimates of $2.09 on $2.02 billion in revenues for the upcoming quarter and $2.01 on $6.09 billion in revenues for the current fiscal year [7] - The company has surpassed consensus EPS estimates in all four of the last quarters, indicating a positive trend in earnings performance [2] Industry Context - The Retail - Apparel and Shoes industry, to which Victoria's Secret belongs, is currently ranked in the top 31% of over 250 Zacks industries, suggesting a favorable environment for stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]