VSCO Stock Forecast & Price Target

Victoria's Secret & Co. has demonstrated significant segment momentum, with system-wide retail sales growing double digits year-over-year, attributed to strong performance from its franchise and travel retail partners, particularly in China and the UK. The company anticipates a net sales increase of 3%-4% year-over-year for the fourth quarter, bolstered by solid store traffic conversion and strong sales from both the Victoria's Secret and PINK brands, alongside a successful holiday season for its beauty products. Additionally, reported results exceeded expectations, with total sales rising 1.1% to $2.106 billion, reflecting a healthy comparable growth rate of 5%, indicating robust operational performance and consumer demand.

Victoria's Secret & Co (VSCO) is projecting a decline in first-quarter sales to $1.30B-$1.33B, down from $1.36B last year and below the consensus expectation of $1.40B. The company also forecasts a significant drop in FY25 EPS, guiding to a range of $2.00-$2.45, which is notably lower than the earlier consensus of $2.80. Additionally, international sales have experienced a concerning decline of 0.6% year-over-year, further contributing to a negative outlook due to deteriorating growth metrics and disappointing operating income expectations.