Victoria’s Secret (NYSE:VSCO), in a recent investor event, outlined its strategic plans to drive growth, revive old selling points, and make a re-entry into popular culture. The company said the aim is to revisit the successful formula from a decade ago.
Maximize Your Portfolio with Data Driven Insights:
- Leverage the power of TipRanks' Smart Score, a data-driven tool to help you uncover top performing stocks and make informed investment decisions.
- Monitor your stock picks and compare them to top Wall Street Analysts' recommendations with Your Smart Portfolio
According to Greg Unis, president of Victoria’s Secret, the company plans to revive other segments of its old business model, including apparel and swimwear offerings. In addition, he mentioned that the company will widen its product scope and do so in line with consumer dynamics. However, although its business is lagging in North America, Victoria’s Secret has recorded moderate demand internationally. With the new strategy, the company intends to drive growth in North America.
Bofa analyst Alice Xiao noted that the international sales show potential growth and profitability upsides and could boost Q4 sales and engagements. On the other hand, Jefferies said the company’s market recovery may not come quickly despite the strategic plans.
Is VSCO a Buy or Sell?
Turning to Wall Street, analysts have a Hold consensus rating on VSCO stock based on two Buys, three Holds, and one Sell assigned in the past three months, as indicated by the graphic above. Furthermore, the average VSCO price target of $20.33 per share implies 30.61% upside potential.
