Victoria's Secret is set to release its earnings report for the fiscal second quarter after the market closes on Wednesday. Here are the key details you need to know about:

Earnings Outlook

  • According to FactSet, analysts predict that Victoria's Secret will report earnings per share of 23 cents for the three-month period ending in July.
  • This is a significant decrease compared to the 83 cents per share reported during the same period last year and the 1 cent per share in the first quarter.
  • The company previously stated on May 31 that it expected second-quarter earnings to be in the range of 10 to 40 cents per share.

Sales Forecast

  • FactSet forecasts that the Ohio-based lingerie retailer will report sales of $1.44 billion for the quarter.
  • This is a decrease from the reported sales of $1.52 billion during the same period last year.
  • Victoria's Secret had previously anticipated a decrease in sales in the mid-to-single digit range.

Key Areas of Interest

1. Demand

  • Investors will closely monitor any comments regarding how wholesalers are adjusting their orders considering consumer spending habits.

2. Inventory

  • The market will pay close attention to whether the company has successfully reduced its inventory levels and will await information on discounts.
  • The first quarter was more promotional than expected, according to CEO Martin Waters.

3. International Growth

  • Investors will be eager for any insights into the company's international growth plans, particularly in China.

4. Outlook

  • Analysts will continue to closely follow Victoria's Secret's outlook for the third quarter and the entire year.
  • In the previous earnings report, the company projected a decrease in net sales by low-single digits to flat.
  • Analysts surveyed by FactSet expect third-quarter sales of $1.32 billion and full-year sales of $6.23 billion.

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