HomeMarket NewsSmall CapsVictorias Secret Faces Stock Turbulence After Lackluster Q3 Results

Victorias Secret Faces Stock Turbulence After Lackluster Q3 Results

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Victorias Secret & Co. VSCO experienced a considerable dip in its shares during Wednesday’s after-hours session, following the unveiling of the company’s third-quarter earnings report.

Fundamental Flaws: The company reported a loss of 86 cents per share for the quarter, falling short of the analyst consensus estimate of losses of 78 cents per share. This marks a stark 396.55% decrease from the earnings of 29 cents per share reported during the same period last year.

The company also revealed that it generated quarterly sales of $1.26 billion, falling below the analyst consensus estimate of $1.27 billion. This reflects a 4.02% decline from the $1.32 billion in sales reported during the same period last year.

The company’s outlook for the fourth quarter indicated a tepid increase in net sales of 2% to 4%, with projected adjusted earnings ranging between $2.20 and $2.60 per share, compared to the estimated $2.43. Moreover, the projected full-year 2024 net sales are expected to decrease by 2% to 3%, with anticipated adjusted earnings ranging between $2.20 and $2.60 per share, compared to the estimated $2.16.

CEOΒ Martin Watersβ€˜s Take: β€œWe are thrilled with the early holiday sales trends in November in North America both in our stores and through our digital platforms. The remarkable sales and margin results for November represent our best monthly performance in nearly two years, demonstrating that our initiatives are bearing fruit. This is fueled by the strong response to our holiday merchandise, improvements in customer experiences, and a compelling marketing campaign featuring Mariah Carey, the voice of Christmas.”

β€œBeyond North America, our business is gaining momentum, with an expanding footprint both in brick-and-mortar stores and online. Our partners are performing exceptionally well, and we are very optimistic about our performance in the Chinese market,” Waters added.

VSCO Price Reaction: VSCO shares registered a 1.19% decline, reaching $23.30 in the after-hours session at the time of publishing on Wednesday, according to Benzinga Pro.

Related Link: From Tesla To Toyota: UAW Launches Ambitious Campaign To Unionize Top Auto Players

Photo:Β Engin Akyurt from Pixabay

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