VSCO Stock Forecast & Price Target

Victoria's Secret & Co. has demonstrated robust momentum, with system-wide retail sales growing in double digits year-over-year, reflecting strong performance through franchise and travel retail partners as well as joint ventures in international markets. The company's expectation for net sales to increase 3%-4% year-over-year in Q4, combined with solid traffic conversion in stores compared to mall performance, highlights its effective customer engagement strategies. Additionally, reported results exceeded expectations, boosted by a gift card accounting change, and overall sales increased by 1.1% to $2.106 billion, indicating a positive outlook for the brand's financial health and growth trajectory.

Victoria's Secret & Co reported a negative outlook due to expected first-quarter sales declining to approximately $1.30B-$1.33B, which is below the previous year's sales and consensus estimates. The company anticipates FY25 EPS to fall between $2.00-$2.45, significantly lower than the prior consensus of $2.80, reflecting a weakened growth trajectory. Additionally, international sales have decelerated, with a year-over-year decline of 0.6% and anticipated operating income dropping to $10MM-$30MM, underscoring the challenges the company faces in achieving sustainable financial improvement.