Victoria's Secret Surprises with Preliminary Q1 Results: CEO Bullish Amid Tough Retail Climate
Portfolio Pulse from Lekha Gupta
Victoria's Secret & Co. (NYSE:VSCO) reported preliminary Q1 FY24 results, surpassing previous guidance with an adjusted EPS of $0.07-$0.12 and sales decline narrower than expected at (3%)-(4%). The company also raised its adjusted operating income forecast for the quarter to $35 million-$40 million and reaffirmed its FY24 revenue outlook at approximately $6 billion. CEO Martin Waters highlighted strong customer response, particularly in April, and noted improving trends in both store and digital sales for Victoria's Secret and PINK brands, alongside strong international growth.
May 10, 2024 | 3:03 pm
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Victoria's Secret reported better-than-expected preliminary Q1 FY24 results, with an adjusted EPS of $0.07-$0.12 and a narrower sales decline. The company also raised its adjusted operating income forecast and reaffirmed its FY24 revenue outlook. Shares rose 6.6% following the announcement.
The positive preliminary Q1 FY24 results, including a better-than-expected adjusted EPS and a narrower sales decline, directly impact investor sentiment and stock price. The company's ability to outperform its previous guidance, especially in a challenging retail environment, signals operational efficiency and resilience. The CEO's optimistic commentary on customer response and improving trends in both store and digital sales further supports a positive outlook for the company's performance. The share price increase of 6.6% reflects the market's positive reaction to these results.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100