Lingerie retailer’s stock plummets after disappointing sales forecast

  • Victoria’s Secret shares slide 25% on weak outlook
  • Stock down 25% in after-hours trading
  • Company expects sales to drop in the low-single digits
  • Analysts were expecting higher revenue
  • Sales in the first quarter expected to drop in the mid-single digits
  • Adjusted earnings in the fourth quarter beat expectations

Shares of Victoria’s Secret fell 25% after the company issued weak outlooks for the first quarter and next fiscal year. The stock dropped to $19.17 in after-hours trading, following a 3.9% decline at Wednesday’s close. Victoria’s Secret expects sales of $6 billion in the next fiscal year, representing a drop in the low-single digits, while analysts were anticipating revenue of $6.2 billion. The company also guided for sales in the first quarter to decrease in the mid-single digits, compared to analysts’ expectations of $1.39 billion in sales, a drop of about 1%. Despite the disappointing sales forecast, the company’s adjusted earnings in the fourth quarter exceeded Wall Street’s expectations, with sales up 3% and meeting analysts’ forecasts.

Factuality Level: 9
Factuality Justification: The article provides factual information about Victoria’s Secret’s stock performance, sales outlook, and analyst expectations. There are no digressions, misleading information, sensationalism, bias, or logical errors present in the article.
Noise Level: 3
Noise Justification: The article provides relevant information about Victoria’s Secret’s stock performance, sales outlook, and analyst expectations. It stays on topic and supports its claims with data and examples. However, it lacks in-depth analysis, accountability, and actionable insights, which prevents it from scoring higher.
Financial Relevance: Yes
Financial Markets Impacted: Shares of Victoria’s Secret
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Rating Justification: The article pertains to financial topics as it discusses the weak outlooks and stock performance of Victoria’s Secret.
Public Companies: Victoria’s Secret (N/A)
Key People: Ben Glickman (Author)

Reported publicly: www.marketwatch.com