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Victoria's Secret (VSCO) to Post Q2 Earnings: What's in Store?

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Victoria's Secret & Co. (VSCO - Free Report) is scheduled to report second-quarter 2023 results on Aug 30. In the last reported quarter, the company’s earnings missed the Zacks Consensus Estimate by 48.2%.

Q2 Estimates

The Zacks Consensus Estimate for earnings is pegged at 27 cents per share, indicating a decrease of 75.2% year over year. In the past seven days, estimate revisions have remained stable. The consensus mark for revenues is pegged at $1.43 billion, down 6% year over year.

Factors to Note

VSCO’s results are likely to be negatively impacted by dismal comparable sales owing to a challenging environment. The consensus estimate for comparable sales hints at a decline of 10.3%. On the flip side, the consensus estimate for direct and North America sales is pegged at $394 and $862 million, implying an 8.8% and 11% dip year over year.

However, Victoria's Secret is likely to have benefited from robust international sales, primarily driven by strong demand in China. The consensus estimate for international revenues is pegged at $153 million, up 10.1% year over year. The company is gaining from a focus on new bra launches, reimagining its merchandise positioning and strategy for PINK. New customer loyalty program as well as fresh customer experience initiatives in its digital technology also bode well.

Victoria's Secret & Co. Price and EPS Surprise Victoria's Secret & Co. Price and EPS Surprise

Victoria's Secret & Co. price-eps-surprise | Victoria's Secret & Co. Quote

What Our Model Says

Our proven model doesn’t conclusively predict an earnings beat for Victoria's Secret this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.  

Earnings ESP: VSCO has an Earnings ESP of -19.02%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: VSCO carries a Zacks Rank #4 (Sell).

Stocks Worth a Look

American Eagle Outfitters (AEO - Free Report) currently has an Earnings ESP of +8.52% and a Zacks Rank #2. It is likely to register a bottom-line increase when it reports second-quarter fiscal 2023 numbers. The Zacks Consensus Estimate for quarterly earnings per share of 15 cents suggests a sharp increase from 4 cents reported in the year-ago quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.

AEO’s top line is expected to decrease year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $1.19 billion, which indicates a marginal decline of 0.9% from the prior-year quarter’s levels. It has a trailing four-quarter earnings surprise of 9.2%, on average.

Casey's General Stores (CASY - Free Report) currently has an Earnings ESP of +1.03% and carries a Zacks Rank #3. It is likely to record a bottom-line decrease while reporting first-quarter fiscal 2024 results. The Zacks Consensus Estimate for quarterly earnings per share of $3.39 indicates a fall of 17.1% from the year-ago quarter.

CASY’s top line is anticipated to dip year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $3.85 billion, implying a 13.5% plunge from the previous-year quarter’s numbers. CASY has a trailing four-quarter earnings surprise of 7.5%, on average.

Costco (COST - Free Report) currently has an Earnings ESP of +1.08% and a Zacks Rank of 3. It is likely to witness a jump in the bottom line when it reports fourth-quarter fiscal 2023 numbers. The Zacks Consensus Estimate for quarterly earnings per share of $4.72 predicts a 12.4% rise from a year ago.

Costco’s top line is projected to ascend year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $78.86 billion, which calls for a climb of 9.4% from the prior-year quarter. COST has a trailing four-quarter earnings surprise of 1.8%, on average.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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