Consumer Shift To Value Hits Premium Brands: Analyst On Victoria Secret's Sales Decline And Market Position
Portfolio Pulse from Nabaparna Bhattacharya
Telsey Advisory Group analyst Dana Telsey has reiterated a Market Perform rating on Victoria's Secret & Co. (NYSE:VSCO) with a price target of $21. The analyst expects Q2 EPS of $0.25 vs. $1.09 last year, due to lower traffic, conversion, and AUR in North America and increased promotional activity pressuring margins. Telsey forecasts total sales to decline 5.2% Y/Y to $1.443 billion. The analyst also highlights the management's strategies to drive growth, including a loyalty program and a more efficient store format.
August 25, 2023 | 6:49 pm
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Victoria's Secret is expected to report a decline in Q2 earnings and sales, according to an analyst from Telsey Advisory Group. However, the company's strategies to drive growth, including a loyalty program and a more efficient store format, are highlighted.
The analyst's forecast of a decline in Q2 earnings and sales for Victoria's Secret indicates potential negative short-term impact on the company's stock. However, the company's growth strategies could mitigate some of this impact.
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