Shares of specialty apparel and beauty products provider Victoria’s Secret (NYSE:VSCO) are trending lower today after its second-quarter numbers lagged estimates and its financial outlook disappointed investors.
In Q2, revenue dropped 5.9% year-over-year to $1.43 billion, missing expectations by $10 million. Furthermore, EPS at $0.24 missed the mark by $0.02. The challenging macroeconomic environment is pressuring VSCO’s customer base and core intimate categories. This impact was particularly visible in sales at its Victoria’s Secret and PINK businesses. However, VSCO’s international business remained resilient, displaying a 25% sales growth over the prior year.
Looking ahead to the full year 2023, the company expects net sales to drop in the low-single-digit range, with adjusted operating income anticipated to be between 5% and 6% of net sales. Net sales for the third quarter are also expected to decline in the low-to-mid-single-digit range. The adjusted net loss for the quarter is seen landing between $0.70 and $1 per share.
Overall, the Street has a consensus price target of $24.13 on VSCO, alongside a Moderate Buy consensus rating. Shares of the company have tanked nearly 45.6% for the year so far.
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