Intimatewear and beauty retailer Victoria’s Secret (NYSE:VSCO) beat Wall Street’s revenue expectations in Q2 CY2025, with sales up 3% year on year to $1.46 billion. On top of that, next quarter’s revenue guidance ($1.41 billion at the midpoint) was surprisingly good and 3.6% above what analysts were expecting. Its non-GAAP profit of $0.33 per share was significantly above analysts’ consensus estimates.
Shares of intimatewear and beauty retailer Victoria’s Secret (NYSE:VSCO)
jumped 1.6% in the morning session after the company reported second-quarter financial results that surpassed Wall Street expectations and raised its full-year sales guidance.
Intimatewear and beauty retailer Victoria’s Secret (NYSE:VSCO) reported Q2 CY2025 results exceeding the market’s revenue expectations, with sales up 3% year on year to $1.46 billion. On top of that, next quarter’s revenue guidance ($1.41 billion at the midpoint) was surprisingly good and 3.6% above what analysts were expecting. Its non-GAAP profit of $0.33 per share was significantly above analysts’ consensus estimates.
Victoria's Secret (VSCO) Q2 earnings crush estimates with a $0.33 EPS vs. $0.12 forecast. Revenue of $1.46B also beats. Stock surges on strong results and raised full-year guidance.
Intimatewear and beauty retailer Victoria’s Secret (NYSE:VSCO)
will be reporting results this Thursday before market hours. Here’s what you need to know.
The $10-50 price range often includes mid-sized businesses with proven track records and plenty of growth runway ahead.
They also usually carry less risk than penny stocks, though they’re not immune to volatility as many lack the scale advantages of their larger peers.
Shares of intimatewear and beauty retailer Victoria’s Secret (NYSE:VSCO)
fell 3% in the morning session after the company received a lower price target from analysts at UBS, adding to existing concerns about its financial health. The investment bank cut its price target to $21 from $24, although it maintained a "Neutral" rating on the shares. This move adds to a cautious sentiment on Wall Street, where the average analyst price target has recently decreased. The concerns appear rooted in the company's financial performance, which has shown signs of weakness.
Recent financial data indicates challenges with revenue growth, which saw a decline, and profitability, as the company's net margin is in negative territory. Furthermore, Victoria's Secret's debt-to-equity ratio is high compared to industry norms, suggesting potential financial risk. Compounding these company-specific issues is a broader moderation in the consumer discretionary sector, with reports pointing to muted demand conditions that could create headwinds for the retailer.
A number of stocks fell in the morning session after a hotter-than-expected wholesale inflation report fueled concerns about slowing consumer spending. The market was rattled by a Labor Department report showing the Producer Price Index (PPI), a measure of wholesale inflation, jumped 0.9% in July, significantly exceeding economists' expectations of a 0.2% rise. This was the largest monthly increase since March 2022, reigniting worries that businesses will be forced to pass higher costs on to consumers, who are already showing signs of price sensitivity. This inflation data has fanned concerns that U.S. tariffs on imported goods could start to translate into higher prices for shoppers. The inflation report landed amid growing evidence of consumer caution, with recent reports highlighting that shoppers are cutting back on non-essential spending, seeking out sales, and trading down to cheaper brands.
Shares of intimatewear and beauty retailer Victoria’s Secret (NYSE:VSCO)
jumped 3.1% in the afternoon session after a tame inflation report boosted investor hopes for an interest rate cut from the Federal Reserve. The latest Consumer Price Index data showed the annual inflation rate held steady at 2.7%, reassuring investors who had feared that tariffs could lead to a spike in consumer prices. This milder-than-expected reading gives the Federal Reserve more flexibility to consider lowering interest rates, possibly as soon as next month. A potential rate cut could reduce borrowing costs for consumers and businesses, stimulating more spending and providing a significant boost for the retail industry. Adding to the optimism, reports of a 90-day tariff truce with China further eased concerns about future price pressures.
Small-cap stocks in the Russell 2000 (^RUT) can be a goldmine for investors looking beyond the usual large-cap names.
But with less stability and fewer resources than their bigger counterparts, these companies face steeper challenges in scaling their businesses.
Looking back on apparel retailer stocks’ Q1 earnings, we examine this quarter’s best and worst performers, including Victoria's Secret (NYSE:VSCO) and its peers.
A number of stocks jumped in the afternoon session after markets rebounded following a sharp sell-off in the previous trading session as a weaker-than-expected July jobs report fueled investor hopes for a potential interest rate cut. The U.S. economy added only 73,000 jobs in July, falling well short of the 110,000 expected by economists. This disappointing data has led to a dramatic shift in market sentiment regarding the Federal Reserve's next move. According to the CME FedWatch Tool, the probability of a September interest rate cut has surged from around 40% to over 80%. Lower interest rates generally stimulate the economy by making borrowing cheaper for consumers. This can lead to increased spending on discretionary items, such as apparel and home goods, which directly benefits consumer retail companies. The prospect of more accommodative monetary policy is therefore boosting investor confidence in the sector's outlook.
Many small-cap stocks have limited Wall Street coverage, giving savvy investors the chance to act before everyone else catches on.
But the flip side is that these businesses have increased downside risk because they lack the scale and staying power of their larger competitors.
