From Yahoo Finance: 2025-06-04 14:53:00

Telsey Advisory analyst Dana Telsey maintained a Market Perform rating on Victoria’s Secret & Co. (VSCO) with a price forecast of $24. The company experienced a cybersecurity breach, causing a three-day website shutdown in late May, which the fashion industry largely overlooked. Preliminary first-quarter results revealed revenue of $1.35 billion and adjusted EPS of 9 cents, beating consensus estimates.

The analyst is encouraged by the better-than-expected results, showing continued momentum despite a slow start in January/February. However, the cybersecurity incident is a significant concern, causing the postponement of the full earnings report. With digital sales at ~33% last year, the prolonged website shutdown during Memorial Day sales could have a meaningful impact.

Despite positive first-quarter momentum, the unknown fallout from the cyberattack could weigh on the second quarter and the second half as more details emerge. With ongoing challenges, fluid tariff impacts, and the recent incident, the analyst remains cautious on the company. Telsey believes Victoria’s Secret still needs successful repositioning in its competitive, low-growth category.

Consequently, the analyst lowered FY25 EPS estimates to $2.22 from $2.35, compared to last year’s $2.69 and the previous consensus of $2.22. The FY26 EPS estimate was also lowered to $2.38 from $2.58, against a prior consensus of $2.35. Victoria’s Secret shares are trading lower by 0.84% at $20.10.



Read more at Yahoo Finance: Victoria’s Secret Cybersecurity Breach A Significant Concern: Analyst