Victorias Secret & Co. Down 5.28% To $43.57 After Earnings Beat

Victoria's Secret & Co (VSCO) beat out earnings estimates for Q3 2022 this afternoon.

Victorias Secret & Co.'s earnings came in at an EPS of $0.29 per share, 26.00% higher than estimates for an EPS of $0.23 per share. The firm's earnings are down 64% since reporting $0.81 per share in the same period a year ago. Remember, earnings reported were on an adjusted basis, so they may not be comparable to prior reports and/or analyst estimates.

Consensus estimates for Victorias Secret & Co. revenue averaged out to $1.3 billion, with the business missing on those expectations with reported third-quarter revenue of $1.3 billion. The $2 million (0%) negative revenue surprise led to negative 9% growth year-over-year as the firm reported revenue of $1.4 billion in its year-ago quarter. The lower earnings growth compared to revenue points to Victorias Secret & Co. not being able to improve its profit margin.

The stock is down 5.28% to $43.57 after the report.

Victorias Secret & Co.'s profit margins took a hit as earnings fell at a faster pace than revenues.

Wall Street Analysts had an average rating of Buy on the stock prior to the report.

InvestorsObserver gives the stock a Bullish Sentiment score at the moment based on recent trading.

Prior to the report, InvestorsObserver gave the stock an overall score of 60. Meanwhile, the average Wall Street analyst rated the stock a Buy.

Victoria's Secret & Co is a specialty retailer of lingerie, pajamas, and beauty products with prestige fragrances and body care. It serves customers at its Lingerie and Beauty stores around the globe and online enabling them to shop the brand anywhere and anytime.