Stock Story -
What Happened: Shares of intimatewear and beauty retailer Victoria's Secret & Co (NYSE:VSCO) jumped 15.4% in the mid-day session after the company reported third quarter results with same-store sales exceeding Wall Street's expectations, though revenue was roughly in line. Management provided some insights into the improved business momentum, noting that in North America, both in-stores and online, the November sales and margin result recorded the best monthly performance in nearly two years. Looking ahead, the company anticipates a 2% to 4% increase in fourth-quarter sales compared to the previous year. As of Cyber Monday (27th November 2023), the business estimated that around one-third of fourth-quarter sales had already been generated, with expectations of significant activity in December. Overall, it was a strong quarter for the company, with encouraging guidance.
Is now the time to buy Victoria's Secret? Find out by reading the original article on StockStory.
What is the market telling us: Victoria's Secret's shares are quite volatile and over the last year have had 40 moves greater than 5%. But moves this big are very rare even for Victoria's Secret and that is indicating to us that this news had a significant impact on the market's perception of the business.
Victoria's Secret is down 17% since the beginning of the year, and at $27.39 per share it is trading 40.7% below its 52-week high of $46.20 from December 2022. Investors who bought $1,000 worth of Victoria's Secret's shares at the IPO in July 2021 would now be looking at an investment worth $644.24.