Telsey Advisory’s analyst, Dana Telsey, has maintained a Market Perform rating for Victoria’s Secret & Co. (NYSE:VSCO), forecasting a price of $24. Despite reporting a cybersecurity breach that took its website offline for three days in May, the company revealed preliminary first-quarter results with revenue of $1.35 billion, surpassing the consensus of $1.33 billion, and an adjusted EPS of 9 cents, exceeding the expected four cents. The results are an improvement over the company’s previous guidance of net sales between $1.30 billion and $1.33 billion, and an adjusted EPS ranging from a loss of 10 cents to a profit of 10 cents.
The analyst is optimistic about the better-than-expected performance, indicating sustained momentum despite a slow start earlier in the year. However, the cybersecurity breach remains a significant concern, as it delayed the full earnings report. Given that digital sales accounted for approximately 33% last year, the website’s shutdown during Memorial Day sales could have a substantial impact.
While the first quarter showed promise, the analyst warns that the repercussions of the cyberattack could affect the second quarter and beyond. Coupled with ongoing macroeconomic challenges and tariff uncertainties, caution remains advised for the company. Despite improvements in product offerings and brand messaging, Telsey believes Victoria’s Secret still needs to strengthen its position in a highly competitive, low-growth market.
As a result, the analyst has revised the FY25 EPS estimate to $2.22, down from $2.35, compared to last year’s $2.69 and the previous consensus of $2.22. The FY26 EPS estimate has also been adjusted to $2.38 from $2.58, against a prior consensus of $2.35. Currently, VSCO shares are trading down by 0.84% at $20.10.
