Intimatewear and beauty retailer Victoria’s Secret (NYSE: VSCO) will be reporting earnings this Tuesday before market hours. Here’s what to expect.
Victoria's Secret beat analysts’ revenue expectations last quarter, reporting revenues of $2.27 billion, up 7.8% year on year. It was a very strong quarter for the company, with revenue guidance for next quarter exceeding analysts’ expectations and a solid beat of analysts’ EBITDA estimates.
Is Victoria's Secret a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Victoria's Secret’s revenue to grow 12.4% year on year, improving from its flat revenue in the same quarter last year.
Heading into earnings, analysts covering the company have grown increasingly bullish with revenue estimates seeing mostly upward revisions over the last 30 days. Victoria's Secret has a history of exceeding Wall Street’s expectations.
Looking at Victoria's Secret’s peers in the apparel retailer segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Urban Outfitters delivered year-on-year revenue growth of 11.4%, beating analysts’ expectations by 1.4%, and American Eagle reported revenues up 9.7%, topping estimates by 0.9%. Urban Outfitters traded up 2.9% following the results while American Eagle was down 12%.
Read our full analysis of Urban Outfitters’s results here and American Eagle’s results here.
There has been positive sentiment among investors in the apparel retailer segment, with share prices up 4.2% on average over the last month. Victoria's Secret is up 9.9% during the same time and is heading into earnings with an average analyst price target of $65.78 (compared to the current share price of $55.25).
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