Victoria’s Secret’s Updated Q3 View Justifies Recent Surge In Its Stock
Last night, Victoria’s Secret
However, I believe the bigger reason why VSCO’s shares were up 10% today and added nicely to their already strong performance month-to-date is the company’s simultaneous announcement that based on quarter-to-date trends and expectations for the balance of the period, it now estimates Q3 operating income and earnings to come in towards the high end of its previously communicated guidance ranges of $10-40 million and 0-25 cents per share. That’s much better than the $29.3 million and 14 cents analysts had been projecting and likely helps ease growing fears of weaker profits driven by the persistence of high inflation and weakening consumer spending trends. And if guidance for the all-important fourth quarter (which begins next month) when the company officially reports these earnings in November shows a continuation of these improving trends, I think the stock—which continues to trade at less than 8 times this year’s earnings expectations even after today’s bounce—can further add to it recent recovery in the months ahead.