Lingerie Giant Victoria's Secret Stock Slides After Q1 Top-Line Dip: Details
Portfolio Pulse from Lekha Gupta
Victoria's Secret & Co. (NYSE:VSCO) reported a 3.4% Y/Y revenue decline for Q1 FY24, with total comparable sales down 5% Y/Y. Despite a challenging retail environment, the company managed to beat EPS estimates. The stock is down 2.92% premarket. Investors can also gain exposure through SPDR S&P Retail ETF (NYSE:XRT).
June 06, 2024 | 12:03 pm
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NEUTRAL IMPACT
Investors can gain exposure to Victoria's Secret through the SPDR S&P Retail ETF (NYSE:XRT). The ETF may see minor fluctuations due to VSCO's performance.
While VSCO's performance may impact XRT, the ETF's diversified holdings will likely mitigate significant short-term effects.
CONFIDENCE 80
IMPORTANCE 50
RELEVANCE 50
NEGATIVE IMPACT
Victoria's Secret reported a 3.4% Y/Y revenue decline for Q1 FY24, with total comparable sales down 5% Y/Y. Despite a challenging retail environment, the company managed to beat EPS estimates. The stock is down 2.92% premarket.
The revenue decline and decrease in comparable sales indicate a challenging quarter, which is likely causing the stock to drop. However, the EPS beat provides a slight positive note.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100