Blocked because of Ad Blocker
It seems that you are using some ad blocking software which is preventing the page from fully loading. Please whitelist this website or disable ad blocking software.
Shoppers pass in front of a Victoria’s Secret store at a mall in San Diego, California, April 22, 2021.
Bing Guan | Bloomberg | Getty Images
Shares of Victoria’s Secret are tumbling while those of Bath & Body Works are on the rise after the two retailers reported their respective quarterly earnings results for the first time as stand-alone businesses.
Both companies were previously part of L Brands, but Victoria’s Secret was spun off earlier this month.
Victoria’s Secret shares closed Thursday down 3.5% at $69.15, while Bath & Body Works shares rose more than 10% to $65.51. Both stocks had seen a runup in recent weeks, as investors anticipated the businesses would operate stronger on their own.
Bath & Body Works has a larger market value at $17.34 billion, while Victoria’s Secret is valued at about $6.1 billion.
In the thick of a turnaround, Victoria’s Secret said Wednesday that its sales rose to $1.61 billion, from $1.07 billion a year ago. But revenues haven’t yet returned to pre-pandemic levels, even as consumers head back to stores to freshen up their closets.
The company also refrained from offering an outlook for the full year. It said it still faces uncertainty from the Covid pandemic, making forecasting consumer demand all the more difficult.
Covid-related disruption to the lingerie maker’s supply chain is also expected to increase freight and product costs by as much as $100 million in the fall season, hitting fourth-quarter profitability, Victoria’s Secret said.
Telsey Advisory Group lowered its price target on Victoria’s Secret stock to $73 from $76, on the heels of the results. Sales came in light in the latest quarter and the retailer’s third-quarter guidance was below consensus estimates, analyst Dana Telsey said in a note to clients.
Bath & Body Works, meantime, said its sales in the latest period totaled $1.70 billion, a 54% increase from 2019 levels.
The maker of lotions and hand sanitizers has seen heightened demand for its products during the pandemic. The company added that it is optimistic about its fall and holiday lineup of merchandise, which should drive momentum in the back half of the year.
Wells Fargo analyst Ike Boruchow maintained an $80 price target on the stock, saying Bath & Body Works remains a “best-in-class story” in the retail industry today.
The post Victoria’s Secret shares tumble, Bath & Body Works rises after earnings reports appeared first on BitcoinLinux.