VSCO stock soared more than 9% in after-hours trading on November 17, 2021, after the company reported financials.
Victoria’s Secret & Co. Reports Third Quarter Earnings Per Share Above Guidance
REYNOLDSBURG, Ohio, Nov. 17, 2021 (GLOBE NEWSWIRE) — Victoria’s Secret & Co. (“Victoria’s Secret” or the “Company”) (NYSE: VSCO) today reported financial results for the third quarter ended October 30, 2021. Victoria’s Secret reported Q3 adjusted EPS of 81c versus the consensus estimate of 71c. The company reported Q3 revenue of $1.44B versus the consensus estimate of $1.46B.
The Company reported net income of $75.2 million, or diluted earnings per share of $0.81 in the third quarter of 2021, compared to previously communicated guidance of $0.60 to $0.70 per diluted share. This result compares to net income of $143.4 million, or earnings per share of $1.62 and adjusted net income of $72.6 million, or adjusted earnings per share of $0.82 for the period ended October 31, 2020.
Third quarter 2021 operating income was $107.9 million compared to operating income of $127.4 million and adjusted operating income of $97.5 million in last year’s third quarter. Third quarter 2021 operating income growth of 11% over adjusted operating income in last year’s third quarter was driven by solid total sales growth of 7% and gross margin dollar growth of 14%.
The Company reported net sales of $1.441 billion for the third quarter of 2021, an increase of 7% compared to net sales of $1.353 billion for last year’s third quarter. Third quarter 2021 sales decreased 9% compared to sales of $1.577 billion in the third quarter of 2019 and reflect the net closure of approximately 260 company-operated stores since the third quarter of 2019. Total comparable sales for the third quarter of 2021 increased 4% compared to the third quarter of 2019.
CEO Martin Waters commented, “I am very pleased with our solid third quarter performance which reflects growth in all core categories. Our work to transform our brand, deepen our customer connections and improve our operational fundamentals is gaining positive traction. We continue to improve our merchandise assortment and expand our already strong customer file. I’m proud of the commitment and resilience demonstrated by our teams, who delivered these results in challenging circumstances, and in doing so are demonstrating the power of a healthy culture. We continue to monitor global supply chain issues and believe our close partnerships with our vendors and our work to get ahead of the curve will help mitigate those challenges. Looking ahead, the leadership team and I believe we have the right strategy and a dedicated team focused on driving long-term growth and creating value for our shareholders.”
Fourth Quarter 2021 Outlook
The Company is forecasting fourth quarter 2021 sales to be in the range of flat to up 3% versus last year’s fourth quarter sales of $2.100 billion and diluted earnings per share to be in the range of $2.35 to $2.65.
Victoria’s Secret & Co. will conduct its third quarter earnings call at 8:00 a.m. Eastern on November 18. To listen, call 1-800-619-9066 (international dial-in number: 1-212-519-0836); conference ID 5358727. For an audio replay, call 1-800-839-8275 (international replay number: 1-203-369-3606); conference ID 175361 or log onto www.victoriassecretandco.com. The materials accompanying the earnings call have been posted on the investor relations section of the Company’s website. The audio replay will be available approximately two hours after the conclusion of the call.
VSCO Stock Technical Analysis
The short term is neutral, but the long term trend is still positive. Not much to worry about for now. VSCO has a bad technical rating, but it does show a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. There is very little resistance above the current price. There is a support zone below the current price at 51.29, a stop order could be placed below this zone. We notice that large players showed an interest for VSCO in the last couple of days, which is a good sign. Click here to sign up for email alerts on when VSCO stock is a good buy.