Benzinga - by Nabaparna Bhattacharya, Benzinga Editor.
Victoria’s Secret & Co. (NYSE:VSCO) stock is trading lower in the premarket session on Friday after ending yesterday’s run with a massive loss of 30% in share prices.
Over the last one year, shares of Victoria’s Secret fell 46%, while the broader S&P 500 gained almost 30%.
During the recently reported fourth-quarter results, the company’s CEO Martin Waters commented that the broader intimates market in North America had been down for four consecutive quarters.
Victoria’s Secret reported fourth-quarter revenue of $2.08 billion, which missed consensus estimates of $2.09 billion.
The company forecasted first-quarter 2024 net sales to decrease mid-single digits compared to last year’s first-quarter net sales of $1.407 billion. At this forecasted level of sales, adjusted operating income for the first quarter of 2024 is expected to be in the range of $10 million to $35 million.
Telsey Advisory Group analyst Dana Telsey said that the weaker performance demonstrates how challenging it is to execute well in a difficult operating environment.
Furthermore, the North American intimates market is expected to remain under pressure through at least the first half of 2024, resulting in a disappointing first quarter guide and softer FY24 outlook, the analyst notes.
Price Action: VSCO shares are trading lower by 3.16% to $17.44 premarket on the last check Friday.
Photo via Wikimedia Commons
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.