Victoria's Secret Q1 Earnings Preview: Revenue Expected to Decline 1.7%

Victoria's Secret (VSCO) is set to report Q1 earnings before market open. Analysts expect revenue to decline 1.7% YoY to $1.34 billion and adjusted earnings of $0.04 per share. Despite missing gross margin estimates last quarter, the company beat EBITDA expectations. Share prices have risen 6.8% in the past month, with an average analyst price target of $23.

Victoria's Secret (VSCO) is poised to release its Q1 2025 earnings report before the market opens today. Analysts are expecting the company to report revenue of $1.34 billion, a 1.7% year-over-year (YoY) decline, and adjusted earnings of $0.04 per share. Despite missing gross margin estimates in the previous quarter, VSCO managed to beat expectations for earnings before interest, taxes, depreciation, and amortization (EBITDA).

Share prices for VSCO have risen by 6.8% in the past month, driven by positive market sentiment and expectations for a strong earnings report. The average analyst price target for VSCO stands at $23, reflecting a cautious but optimistic outlook among Wall Street analysts.

In the past month, VSCO's stock has outperformed the broader market, with a 6.8% increase compared to the Zacks S&P 500 composite's 6.1% gain. The company's Zacks Rank #3 (Hold) indicates a neutral stance from analysts, suggesting that they expect VSCO to mirror the overall market performance in the near future.

However, recent developments have added a layer of uncertainty to the earnings report. On May 24, 2025, VSCO experienced a security incident that temporarily shut down its corporate systems and e-commerce website. The incident did not impact the company's financial results for the first quarter, but it has delayed the earnings release and call webcast. The company expects net sales, adjusted operating income, and adjusted diluted earnings per share to be near or exceed the high-end of previously issued guidance ranges, indicating strong financial performance despite the incident.

Investors should closely monitor VSCO's earnings report and any updates on the security incident to gauge the company's resilience and future prospects. The company's ability to navigate the recent security incident and maintain strong financial performance will be a key indicator of its long-term success.

References:
[1] https://finance.yahoo.com/news/curious-victorias-secret-vsco-q1-131505788.html
[2] https://www.nasdaq.com/articles/victorias-secret-co-postpones-q1-2025-earnings-release-amid-security-incident