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Earnings Preview: Victoria's Secret

Benzinga·12/04/2025 14:00:19
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Victoria's Secret (NYSE:VSCO) will release its quarterly earnings report on Friday, 2025-12-05. Here's a brief overview for investors ahead of the announcement.

Analysts anticipate Victoria's Secret to report an earnings per share (EPS) of $-0.59.

Victoria's Secret bulls will hope to hear the company announce they've not only beaten that estimate, but also to provide positive guidance, or forecasted growth, for the next quarter.

New investors should note that it is sometimes not an earnings beat or miss that most affects the price of a stock, but the guidance (or forecast).

Past Earnings Performance

In the previous earnings release, the company beat EPS by $0.20, leading to a 1.54% increase in the share price the following trading session.

Here's a look at Victoria's Secret's past performance and the resulting price change:

Quarter Q2 2025 Q1 2025 Q4 2024 Q3 2024
EPS Estimate 0.13 0.09 2.3 -0.62
EPS Actual 0.33 0.09 2.6 -0.50
Price Change % 2.00 -6.00 -8.0 12.00

eps graph

Stock Performance

Shares of Victoria's Secret were trading at $42.51 as of December 03. Over the last 52-week period, shares are down 11.47%. Given that these returns are generally negative, long-term shareholders are likely a little upset going into this earnings release.

Analyst Views on Victoria's Secret

For investors, staying informed about market sentiments and expectations in the industry is paramount. This analysis provides an exploration of the latest insights on Victoria's Secret.

Victoria's Secret has received a total of 6 ratings from analysts, with the consensus rating as Neutral. With an average one-year price target of $34.5, the consensus suggests a potential 18.84% downside.

Comparing Ratings with Competitors

The below comparison of the analyst ratings and average 1-year price targets of Buckle, American Eagle Outfitters and Abercrombie & Fitch, three prominent players in the industry, gives insights for their relative performance expectations and market positioning.

  • Analysts currently favor an Neutral trajectory for Buckle, with an average 1-year price target of $55.0, suggesting a potential 29.38% upside.
  • Analysts currently favor an Neutral trajectory for American Eagle Outfitters, with an average 1-year price target of $21.2, suggesting a potential 50.13% downside.
  • Analysts currently favor an Neutral trajectory for Abercrombie & Fitch, with an average 1-year price target of $109.69, suggesting a potential 158.03% upside.

Peer Analysis Summary

The peer analysis summary provides a snapshot of key metrics for Buckle, American Eagle Outfitters and Abercrombie & Fitch, illuminating their respective standings within the industry. These metrics offer valuable insights into their market positions and comparative performance.

Company Consensus Revenue Growth Gross Profit Return on Equity
Victoria's Secret Neutral 2.96% $519M 2.42%
Buckle Neutral 4.94% $145.01M 9.87%
American Eagle Outfitters Neutral 6.16% $499.96M 5.76%
Abercrombie & Fitch Neutral 6.79% $756.97M 8.66%

Key Takeaway:

Victoria's Secret ranks at the bottom for Revenue Growth among its peers. It also ranks at the bottom for Gross Profit. However, it ranks in the middle for Return on Equity.

Discovering Victoria's Secret: A Closer Look

Victoria's Secret & Co is a retailer of women's intimate and other apparel and beauty products marketed under the Victoria's Secret, PINK, and Adore Me brand names. It also includes the merchandise sourcing and production function serving the Company and its international partners. The Company operates as a single segment designed to serve customers seamlessly through stores and online channels.

A Deep Dive into Victoria's Secret's Financials

Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.

Revenue Growth: Victoria's Secret's revenue growth over a period of 3 months has been noteworthy. As of 31 July, 2025, the company achieved a revenue growth rate of approximately 2.96%. This indicates a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Consumer Discretionary sector.

Net Margin: Victoria's Secret's net margin is below industry standards, pointing towards difficulties in achieving strong profitability. With a net margin of 1.1%, the company may encounter challenges in effective cost control.

Return on Equity (ROE): The company's ROE is below industry benchmarks, signaling potential difficulties in efficiently using equity capital. With an ROE of 2.42%, the company may need to address challenges in generating satisfactory returns for shareholders.

Return on Assets (ROA): Victoria's Secret's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of 0.34%, the company may face hurdles in achieving optimal financial performance.

Debt Management: Victoria's Secret's debt-to-equity ratio surpasses industry norms, standing at 4.23. This suggests the company carries a substantial amount of debt, posing potential financial challenges.

To track all earnings releases for Victoria's Secret visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.