A Preview Of Victoria's Secret's Earnings

Victoria's Secret VSCO is set to give its latest quarterly earnings report on Thursday, 2025-06-05. Here's what investors need to know before the announcement.

Analysts estimate that Victoria's Secret will report an earnings per share (EPS) of $0.04.

Victoria's Secret bulls will hope to hear the company announce they've not only beaten that estimate, but also to provide positive guidance, or forecasted growth, for the next quarter.

New investors should note that it is sometimes not an earnings beat or miss that most affects the price of a stock, but the guidance (or forecast).

Overview of Past Earnings

During the last quarter, the company reported an EPS beat by $0.30, leading to a 8.24% drop in the share price on the subsequent day.

Here's a look at Victoria's Secret's past performance and the resulting price change:

Market Performance of Victoria's Secret's Stock

Shares of Victoria's Secret were trading at $20.27 as of June 03. Over the last 52-week period, shares are down 4.4%. Given that these returns are generally negative, long-term shareholders are likely a little upset going into this earnings release.

Analyst Observations about Victoria's Secret

For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding Victoria's Secret.

The consensus rating for Victoria's Secret is Neutral, derived from 18 analyst ratings. An average one-year price target of $23.61 implies a potential 16.48% upside.

Peer Ratings Overview

In this comparison, we explore the analyst ratings and average 1-year price targets of Revolve Gr and American Eagle Outfitters, three prominent industry players, offering insights into their relative performance expectations and market positioning.

• Analysts currently favor an Neutral trajectory for Revolve Gr, with an average 1-year price target of $23.78, suggesting a potential 17.32% upside.
• Analysts currently favor an Neutral trajectory for American Eagle Outfitters, with an average 1-year price target of $13.0, suggesting a potential 35.87% downside.

Key Findings: Peer Analysis Summary

The peer analysis summary provides a snapshot of key metrics for Revolve Gr and American Eagle Outfitters, illuminating their respective standings within the industry. These metrics offer valuable insights into their market positions and comparative performance.

Key Takeaway:

Victoria's Secret ranks highest in gross profit among its peers. It is in the middle for consensus rating and revenue growth. However, it has the highest return on equity compared to its peers.

Delving into Victoria's Secret's Background

Victoria's Secret & Co is a retailer of women's intimate and other apparel and beauty products marketed under the Victoria's Secret, PINK, and Adore Me brand names. It also includes the merchandise sourcing and production function serving the Company and its international partners. The Company operates as a single segment designed to serve customers seamlessly through stores and online channels.

Understanding the Numbers: Victoria's Secret's Finances

Market Capitalization: Indicating a reduced size compared to industry averages, the company's market capitalization poses unique challenges.

Revenue Growth: Over the 3 months period, Victoria's Secret showcased positive performance, achieving a revenue growth rate of 1.1% as of 31 January, 2025. This reflects a substantial increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Consumer Discretionary sector.

Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 9.16%, the company showcases strong profitability and effective cost control.

Return on Equity (ROE): Victoria's Secret's ROE excels beyond industry benchmarks, reaching 36.11%. This signifies robust financial management and efficient use of shareholder equity capital.

Return on Assets (ROA): Victoria's Secret's ROA excels beyond industry benchmarks, reaching 4.08%. This signifies efficient management of assets and strong financial health.

Debt Management: With a high debt-to-equity ratio of 4.22, Victoria's Secret faces challenges in effectively managing its debt levels, indicating potential financial strain.

To track all earnings releases for Victoria's Secret visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.