These Analysts Revise Their Forecasts On Victoria's Secret Following Q1 Earnings

Core Insights - Victoria's Secret & Co. reported in-line earnings for Q1 with adjusted earnings per share of 9 cents and quarterly sales of $1.35 billion, remaining flat year over year [1] - CEO Hillary Super expressed satisfaction with the business's performance, highlighting strength in the Beauty segment and PINK apparel, as well as new offerings in sport and swim [2] Financial Guidance - The company has lowered its FY25 adjusted operating income guidance to a range of $270 million to $320 million, down from a previous forecast of $300 million to $350 million, and anticipates a net tariff impact of approximately $50 million for the fiscal year [3] - Victoria's Secret reaffirmed its FY2025 sales guidance of $6.20 billion to $6.30 billion, compared to the $6.24 billion consensus estimate [3] Q2 Expectations - For Q2, Victoria's Secret expects adjusted earnings per share to range between 0 cents and 15 cents, missing the consensus estimate of 30 cents, and forecasts sales between $1.38 billion and $1.41 billion, slightly below the $1.42 billion estimate [4] - Following the earnings announcement, shares fell 5.4% to close at $21.00 [4] Analyst Ratings - B of A Securities analyst Alice Xiao maintained an Underperform rating on Victoria's Secret and lowered the price target from $20 to $18 [6] - Barclays analyst Adrienne Yih maintained an Overweight rating and raised the price target from $22 to $23 [6]