Why Victoria’s Secret (VSXY) Stock Is Down 18% Despite a Big Earnings Beat

TLDR

• Victoria’s Secret stock fell 18% in premarket trading after Q2 results disappointed Wall Street on sales.
• Adjusted EPS of $0.95 beat estimates of $0.77, but net sales of $1.61 billion slightly missed the $1.62 billion consensus.
• Comparable sales grew 9%, beating estimates but slowing from 13% in Q1.
• Q3 operating income guidance came in well below expectations, with a midpoint of $15 million vs. the $24.4 million Street estimate.
• Full-year revenue guidance was raised to $7.1B-$7.18B, roughly in line with consensus.

Victoria’s Secret stock dropped 18% to $69.61 in premarket trading Thursday after the retailer’s Q2 earnings report failed to satisfy Wall Street, despite a strong earnings beat.

Victoria’s Secret & Company, VSXY

The company posted adjusted EPS of $0.95 for the fiscal second quarter ended August 1, up from $0.33 a year ago and well above the analyst consensus of $0.77. Net sales rose 10% year-over-year to $1.61 billion, just short of the $1.62 billion Wall Street expected.

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