VSCO - Victoria's Secret: Weak Fundamentals Is Why We Are Sellers Of The Stock
2024-06-12 09:43:58 ET
Summary
- VSCO's sales and earnings continue to decline, despite meeting analyst estimates.
- The macroeconomic environment has deteriorated, with weakening consumer sentiment.
- Low price multiples do not make VSCO a value play based on its fundamentals.
- We maintain our "sell" rating.
Victoria's Secret & Co. ( VSCO ) operates as a specialty retailer of women’s intimate, and other apparel and beauty products worldwide. We have started coverage on the firm in September 2023, with an initial bearish rating, stating that the firm’s stock may just be a value trap. We have reiterated this “sell” rating in March 2024, due to the deteriorating financial performance and the uncertain macroeconomic environment. Over the period of our coverage, the firm’s stock has substantially underperformed the broader market....
Victoria's Secret: Weak Fundamentals Is Why We Are Sellers Of The Stock