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Victoria's Secret (VSCO) to Post Q4 Earnings: What's in Store?

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Victoria's Secret & Co. (VSCO - Free Report) is scheduled to report fourth-quarter 2023 results on Mar 6. In the last reported quarter, VSCO’s earnings missed the Zacks Consensus Estimate by 7.5%.

Q4 Estimates

The Zacks Consensus Estimate for fourth-quarter earnings per share is pegged at $2.46, indicating a decline of 0.4% year over year. In the past seven days, estimate revisions have remained stable. The consensus mark for revenues is pegged at $2.09 billion, suggesting a 3.5% increase year over year.

Factors to Note

In the to-be-reported quarter, VSCO’s top line is likely to have benefited from thriving international sales, largely propelled by high demand in China. The company is capitalizing on its focus on new bra releases, redefining its merchandise positioning and strategy for the PINK brand. Additionally, the implementation of a new customer loyalty program and innovative customer experience initiatives in digital technology are contributing to its performance.

The consensus estimate for international revenues is pegged at $173 million, implying a 10.2% increase from the previous year. The estimate for direct sales is anticipated to be $712 million, suggesting a year-over-year increase of 6.7%. However, the consensus estimate for North America sales is pinned at $1.14 billion, implying a decline of 4.9% year over year.

The company is expected to have faced adverse effects on its results due to poor comparable sales in a challenging market environment.

What Our Model Says

Our proven model does not 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 -0.27%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Victoria's Secret carries a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

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

Recent Consumer Discretionary Releases

Hyatt Hotels Corporation (H - Free Report) delivered decent fourth-quarter 2023 results, with earnings topping the Zacks Consensus Estimate but declining on a year-over-year basis. The company's revenues surpassed the consensus mark and increased year over year.

Hyatt’s quarterly results reflected year-over-year growth in comparable system-wide revenue per available room, driven by an increase in occupancy and average daily rate. The uptrend is mainly driven by strong global travel demand, especially among leisure and business guests, and group customers. However, increased costs and expenses and foreign currency risks partially offset the aforementioned tailwinds and hurt the bottom line.

Planet Fitness, Inc. (PLNT - Free Report) reported fourth-quarter 2023 results, with both earnings and revenues beating the Zacks Consensus Estimate. Also, both metrics increased on a year-over-year basis.

However, the company cited concerns about continued macroeconomic uncertainty and a slowing down of sales (owing to a transition toward more strength equipment over cardio). The company anticipates 2024 sales distribution to resemble that of 2023, showing a return to a standard quarterly rhythm.

Live Nation Entertainment, Inc. (LYV - Free Report) reported mixed fourth-quarter 2023 results, with earnings missing the Zacks Consensus Estimate and revenues beating the same. Revenues surpassed the consensus estimate for the seventh straight quarter.

The company has been benefiting from the pent-up demand for live events and robust ticket sales. It continues to benefit from the robust performance of Ticketmaster and an increase in fan spending. In 2023, 145 million fans attended more than 50,000 events.

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

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