Victoria's Secret Stock Falls After Below-Expectation Q3 Profit Outlook
Shares of Victoria's Secret & Co. (NYSE: VSCO) dropped over 12% following a weaker-than-expected third-quarter profit forecast, despite strong second-quarter results and an upward revision to full-year guidance. The company reported $1.61 billion in Q2 revenue—up 10% year-over-year but slightly below the estimated $1.62 billion—and adjusted earnings per share of $0.95, surpassing expectations by a significant margin. Victoria's Secret raised its annual revenue forecast to between $7.10 billion and $7.18 billion from earlier guidance, though it still fell short of analyst projections. The company also projected Q3 operating income in the range of $10 million to $20 million—well below consensus estimates—which contributed significantly to investor disappointment. Analysts at Jefferies acknowledged strong performance across brands and markets but noted that shares were already trading above historical averages, suggesting much of the positive momentum had been priced into the stock. The brokerage maintained a Hold rating on VSCO.
Tickers: $VSCO
Topics: Profit Forecast Q3 Outlook Stock Movement