Victoria's Secret: First Positive Comp Quarter, Already Has Tripled Expectations
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Victoria's Secret & Co. reported a 3% increase in comparable sales for Q3 2024, driven by international sales. The stock has surged 200% since the new CEO's appointment, raising concerns of overvaluation despite improved guidance. Investors need to believe in sustained revenue growth and margin doubling for decent returns, which is risky.
December 06, 2024 | 10:45 pm
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Victoria's Secret & Co. reported a 3% increase in comparable sales for Q3 2024, driven by international sales. The stock has surged 200% since the new CEO's appointment, raising concerns of overvaluation despite improved guidance.
The 3% increase in comparable sales is a positive indicator for Victoria's Secret, suggesting improved performance. However, the 200% stock price surge since the new CEO's appointment raises concerns about potential overvaluation. While improved guidance is a positive sign, the need for sustained revenue growth and margin improvement introduces significant risk, leading to a neutral short-term impact.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100