Victoria's Secret Q2 Earnings Report: What to Expect

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.