Shares of Victoria’s Secret (NYSE:VSCO) fell in after-hours trading after the company reported earnings for its first quarter of Fiscal Year 2024. Earnings per share came in at $0.12, which beat analysts’ consensus estimate of $0.09 per share.
Sales decreased by -3.5% year-over-year, with revenue hitting $1.36 billion. This was in line with analysts’ expectations. The drop in year-over-year growth aligns with Victoria’s Secret’s website traffic trends. As the image below shows, the number of visitors fell during the most recent quarter, with total estimated visits plunging 19.36% when compared to the same quarter of last year.
Looking forward, management now expects revenue for FY 2024 to be $6 billion, while adjusted operating income is seen landing between $250 million and $275 million. For reference, analysts were also expecting $6 billion in revenue.
Is VSCO Stock a Good Buy?
Turning to Wall Street, analysts have a Moderate Sell consensus rating on VSCO stock based on two Buys, two Holds, and five Sells assigned in the past three months, as indicated by the graphic below. After a 19% rally in its share price over the past year, the average VSCO price target of $18.56 per share implies 17.8% downside risk. However, it’s worth noting that estimates will likely change following today’s earnings report.
