Analyst Brooke Roach from Goldman Sachs maintained a Sell rating on Victoria’s Secret (VSCO – Research Report) and keeping the price target at $15.00.
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Brooke Roach’s rating is based on a combination of factors that suggest caution regarding Victoria’s Secret’s financial outlook. The company’s recent financial performance showed a slight decline in revenue and a contraction in gross margin, which did not meet consensus expectations. Although the adjusted earnings per share were in line with estimates, the overall profitability was slightly below expectations, indicating potential challenges in maintaining margins.
Furthermore, Victoria’s Secret has lowered its full-year earnings guidance, reflecting concerns over increased tariff impacts and a more cautious outlook for the coming quarters. The company’s guidance for the second quarter also fell short of previous expectations, suggesting potential difficulties in achieving growth amidst an uncertain macroeconomic environment. These factors, combined with the need for significant growth in the latter half of the year, contribute to the skepticism surrounding the stock’s performance, leading to the Sell rating.
In another report released on June 4, Wells Fargo also maintained a Sell rating on the stock with a $15.00 price target.