Victoria' Secret & Co. ( NYSE: VSCO ) fell sharply after missing consensus revenue estimates with its Q2 earnings report.
Total comparable sales for the quarter decreased 8% after customer traffic trends decelerated across the retail environment throughout the quarter.
Adjusted operating income was $127M vs. $202M a year ago.
Looking ahead, VSCO expects customers will continue to be challenged by inflationary and other financial pressures for the balance of the year. The retailer said it has adjusted its inventory position and cost structure accordingly while allowing for continued investment in growth initiatives. Guidance from Victoria's Secret was a shocker with Q3 sales seen falling by a high single-digit rate and EPS projected at $0.00 to $0.25 vs. $0.83 consensus.
Shares of VSCO sank 11.34% in after-hours trading to $34.00 vs. the 52-week range of $26.17 to $71.83.
Victoria' Secret ( VSCO ) is swapping hands well below the 100-day and 200-day moving average on the stock.
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Victoria's Secret slides after profit guidance shocker