Victoria's Secret & Co. (NYSE:VSXY) Announces Earnings Results

Key Points

• Victoria’s Secret exceeded earnings expectations: The company reported quarterly EPS of $0.95, beating the $0.76 consensus estimate, while revenue of $1.61 billion came in slightly below the $1.62 billion forecast.
• Shares rose 0.9% and analysts remain moderately bullish: VSXY has a consensus “Moderate Buy” rating and an average price target of $90.70, with recent target increases from Wells Fargo, UBS and Telsey Advisory Group.
• Insider selling contrasts with strong institutional ownership: A major shareholder sold nearly 799,000 shares for about $71.2 million, while hedge funds and other institutions own approximately 90.29% of the company.

Victoria's Secret & Co. (NYSE:VSXY - Get Free Report) issued its quarterly earnings results on Thursday. The company reported $0.95 earnings per share for the quarter, topping analysts' consensus estimates of $0.76 by $0.19, FiscalAI reports. The firm had revenue of $1.61 billion during the quarter, compared to the consensus estimate of $1.62 billion. Victoria's Secret & Co. had a return on equity of 38.03% and a net margin of 3.11%.

Victoria's Secret & Co. Trading Up 0.9%

Shares of VSXY opened at $84.91 on Thursday. The business's 50-day moving average price is $85.87 and its 200-day moving average price is $66.58. The company has a quick ratio of 0.41, a current ratio of 1.26 and a debt-to-equity ratio of 1.17. Victoria's Secret & Co. has a twelve month low of $22.54 and a twelve month high of $102.46. The stock has a market cap of $6.74 billion, a PE ratio of 45.65, a P/E/G ratio of 0.57 and a beta of 2.05.

Analyst Ratings Changes

A number of research analysts recently weighed in on VSXY shares. Wells Fargo & Company upped their price target on Victoria's Secret & Co. from $57.00 to $90.00 and gave the stock an "overweight" rating in a research note on Wednesday, June 3rd. The Goldman Sachs Group lifted their target price on Victoria's Secret & Co. from $56.00 to $84.00 and gave the stock a "neutral" rating in a research note on Wednesday, June 3rd. UBS Group upped their price objective on Victoria's Secret & Co. from $90.00 to $95.00 and gave the company a "neutral" rating in a research note on Tuesday, August 18th. Weiss Ratings upgraded Victoria's Secret & Co. from a "hold (c-)" rating to a "hold (c)" rating in a research note on Wednesday, June 24th. Finally, Telsey Advisory Group lifted their price objective on Victoria's Secret & Co. from $90.00 to $100.00 and gave the stock an "outperform" rating in a report on Wednesday. One analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating and six have assigned a Hold rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $90.70.

Insider Transactions at Victoria's Secret & Co.

In other Victoria's Secret & Co. news, major shareholder International Pte Ltd Bbrc sold 798,920 shares of the firm's stock in a transaction on Tuesday, July 28th. The shares were sold at an average price of $89.15, for a total value of $71,223,718.00. Following the completion of the transaction, the insider directly owned 7,810,631 shares of the company's stock, valued at $696,317,753.65. This trade represents a 9.28% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. In the last 90 days, insiders have sold 1,364,570 shares of company stock valued at $121,396,640. Corporate insiders own 0.52% of the company's stock.

Hedge Funds Weigh In On Victoria's Secret & Co.

Several hedge funds and other institutional investors have recently added to or reduced their stakes in VSXY. Corient Private Wealth LLC raised its holdings in shares of Victoria's Secret & Co. by 29.6% in the 4th quarter. Corient Private Wealth LLC now owns 20,272 shares of the company's stock valued at $1,098,000 after acquiring an additional 4,629 shares in the last quarter. Mercer Global Advisors Inc. ADV purchased a new stake in Victoria's Secret & Co. in the fourth quarter valued at approximately $656,000. Summit Global Investments bought a new stake in Victoria's Secret & Co. during the fourth quarter valued at approximately $408,000. State of Tennessee Department of Treasury lifted its position in Victoria's Secret & Co. by 5.4% during the fourth quarter. State of Tennessee Department of Treasury now owns 34,493 shares of the company's stock valued at $1,880,000 after purchasing an additional 1,771 shares during the last quarter. Finally, Mackenzie Financial Corp purchased a new position in Victoria's Secret & Co. in the 4th quarter worth approximately $237,000. 90.29% of the stock is currently owned by hedge funds and other institutional investors.

Victoria's Secret & Co. Company Profile

Victoria’s Secret & Co is a leading designer, manufacturer and marketer of intimate apparel, beauty products and accessories for women. The company operates a portfolio of brands that includes Victoria’s Secret, renowned for its lingerie, bras and sleepwear; PINK, a line targeting younger consumers with activewear and lifestyle products; and Victoria’s Secret Beauty, offering fragrances, cosmetics and personal care items. Products are sold through retail stores as well as direct-to-consumer channels, including e-commerce platforms and mobile applications.

The origins of Victoria’s Secret date back to 1977, when founders Roy and Gaye Raymond opened the first store in San Francisco.

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