Why Victoria's Secret Stock Is Tumbling Thursday
Portfolio Pulse from Adam Eckert
Victoria's Secret & Co (NYSE:VSCO) shares dropped following mixed Q4 results, with revenue missing and earnings beating estimates. JPMorgan downgraded the stock, and other analysts lowered price targets. The company reported operating cash flow of $589 million, repaid $410 million of its credit facility, and ended with $270 million in cash. A new $250 million share repurchase program was announced. Q1 net sales are expected to decrease mid-single digits, with adjusted operating income between $10 million and $35 million. Full-year 2024 revenue is projected at $6 billion, below estimates of $6.28 billion.
March 07, 2024 | 2:18 pm
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NEGATIVE IMPACT
Victoria's Secret shares fell due to mixed Q4 results, a downgrade by JPMorgan, and lowered price targets by analysts. The company announced a new share repurchase program and provided weaker than expected sales guidance for Q1 and full-year 2024.
The stock's tumble is directly related to the mixed financial results, with revenue missing estimates and the subsequent downgrade by JPMorgan. The lowered price targets by other analysts further contribute to negative sentiment. The announcement of a new share repurchase program might offset some negative impact, but the weaker sales guidance for Q1 and the full year adds to the bearish outlook.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100