VSCO Stock Forecast & Price Target

Victoria's Secret & Co. demonstrated strong financial performance with system-wide retail sales growing in double digits year-over-year, attributed to successful relationships with franchise and travel retail partners, as well as joint ventures in international markets. The company reported a positive outlook for Q4, expecting net sales growth of 3%-4% year-over-year, primarily driven by increased customer traffic and effective conversion strategies. Additionally, total sales rose by 1.1% to $2.106 billion, exceeding consensus expectations and showcasing broad-based strength across its channels and major product categories, reinforcing confidence in the brand's ongoing momentum.

The negative outlook on Victoria's Secret & Co's stock is underscored by a decline in expected sales for the first quarter, projected between $1.30B and $1.33B, which represents a decrease from the previous year's $1.36B and falls short of market consensus. Furthermore, the company's guidance for FY25 EPS, estimated at $2.00-$2.45, significantly undercuts the prior consensus of $2.80, reflecting a downward trend in expectations. Additionally, a notable decline in international sales of 0.6% year-over-year, coupled with disappointing operating income projections of $10MM-$30MM, further contributes to the pessimistic financial outlook for the company.