Victoria's Secret (VSCO) Q3 Earnings: What To Expect

Intimatewear and beauty retailer Victoria’s Secret (NYSE:VSCO) will be reporting earnings this Friday before market hours. Here’s what you need to know.

Victoria's Secret beat analysts’ revenue expectations by 4% last quarter, reporting revenues of $1.46 billion, up 3% year on year. It was a very strong quarter for the company, with a beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.

Is Victoria's Secret a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, analysts are expecting Victoria's Secret’s revenue to grow 4.3% year on year to $1.41 billion, slowing from the 6.5% increase it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.59 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Victoria's Secret has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 1.5% on average.

Looking at Victoria's Secret’s peers in the apparel retailer segment, some have already reported their Q3 results, giving us a hint as to what we can expect. American Eagle delivered year-on-year revenue growth of 5.7%, beating analysts’ expectations by 3.1%, and Tilly's reported a revenue decline of 2.7%, topping estimates by 2%. American Eagle traded up 14.6% following the results.

Read our full analysis of American Eagle’s results here and Tilly’s results here.

There has been positive sentiment among investors in the apparel retailer segment, with share prices up 7.7% on average over the last month. Victoria's Secret is up 19.6% during the same time and is heading into earnings with an average analyst price target of $33.20 (compared to the current share price of $42.58).

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