What Happened?
Shares of intimatewear and beauty retailer Victoria’s Secret (NYSE: VSCO) fell 3.1% in the morning session after the stock continued a recent downward trend as investors look ahead to the company's upcoming second-quarter earnings announcement. While no specific news was released today, the stock has been under pressure since its last earnings report in June. During that announcement, Victoria's Secret lowered its full-year adjusted operating income guidance, citing an anticipated $50 million impact from tariffs. Investors are also monitoring the potential fallout from a security incident in May that temporarily shut down the company's e-commerce site. Although first-quarter results were not materially affected, the company warned of possible financial impacts in the second quarter due to expenses related to the breach. The stock has been in a technical downtrend, and today's move appears to be a continuation of that negative sentiment as the next earnings date approaches.
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What Is The Market Telling Us
Victoria's Secret’s shares are extremely volatile and have had 42 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
Victoria's Secret is down 53% since the beginning of the year, and at $19 per share, it is trading 61% below its 52-week high of $48.71 from December 2024. 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 $447.06.
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