VSCO Stock Forecast & Price Target

Victoria's Secret & Co has demonstrated strong momentum with system-wide retail sales experiencing double-digit year-over-year growth, indicative of robust performance across its franchise and travel retail partnerships, particularly in international markets like China and the UK. The company's expectation of net sales growth of 3%-4% year-over-year in Q4 aligns with heightened consumer interest and effective strategies that drove solid conversion rates amid increased store traffic. Furthermore, reported financial results surpassed expectations, showcasing a 1.1% increase in total sales to $2.106 billion, with broad-based strength observed across channels and major product categories, reinforcing a positive outlook for the company's future performance.

Victoria's Secret & Co's sales projections for the first quarter of FY25 indicate a decline, with expected revenues between approximately $1.30 billion and $1.33 billion, falling short of last year's $1.36 billion and the prior consensus forecast of $1.40 billion. Additionally, the company's guidance for FY25 earnings per share (EPS) is substantially lower than market expectations, estimated between $2.00 and $2.45 compared to a consensus of $2.80. Furthermore, the decrease in international sales along with a significant decline in anticipated operating income for the first quarter highlights ongoing financial challenges, reflecting market disappointment following previous positive consumer sentiment.