Scheduled for August 30, Victoria’s Secret & Co. (NYSE:VSCO) is poised to unveil its second-quarter 2023 outcomes. In the previous quarter, the company’s earnings fell short of the Consensus Estimate by 48.2%.
Q2 Projections
The anticipated earnings, according to the Consensus Estimate, stand at 27 cents per share, reflecting a substantial 75.2% decline year over year. During the last seven days, there have been no significant adjustments to the estimates. As for revenues, the consensus projection settles at $1.43 billion, marking a 6% contraction compared to the previous year.
Key Considerations
The forthcoming results of VSCO might bear the impact of sluggish comparable sales, attributed to a challenging business landscape. The consensus estimate for comparable sales points to a downturn of 10.3%. Conversely, the consensus estimates for direct sales and North America sales stand at $394 million and $862 million, translating to drops of 8.8% and 11%, respectively, on a year-over-year basis.
Nevertheless, Victoria’s Secret is likely to draw advantages from robust international sales, predominantly propelled by robust demand in the Chinese market. The consensus forecast for international revenues rests at $153 million, showcasing a positive 10.1% surge year over year. The company’s favorable prospects are underpinned by its emphasis on new bra launches, strategic repositioning of merchandise, and initiatives concerning its PINK brand. Furthermore, the introduction of a novel customer loyalty program and fresh customer-centric endeavors within its digital technology landscape are poised to contribute positively.
Featured Image: Unsplash © Fahad Waseem
Author Stephanie Bédard-Châteauneuf 
