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Consumers cross in entrance of a Victoria’s Secret retailer at a mall in San Diego, California, April 22, 2021.
Bing Guan | Bloomberg | Getty Photographs
Shares of Victoria’s Secret are tumbling whereas these of Tub & Physique Works are on the rise after the 2 retailers reported their respective quarterly earnings outcomes for the primary time as stand-alone companies.
Each firms have been beforehand a part of L Manufacturers, however Victoria’s Secret was spun off earlier this month.
Victoria’s Secret shares have been down about 6% to only above $67 in buying and selling Thursday morning, whereas Tub & Physique Works shares rose greater than 7% to just about $63. Each shares had seen a runup in latest weeks, as traders anticipated the companies would function stronger on their very own.
Tub & Physique Works has a bigger market worth at $16.82 billion, whereas Victoria’s Secret is valued at about $5.95 billion.
Within the thick of a turnaround, Victoria’s Secret stated Wednesday that its gross sales rose to $1.61 billion, from $1.07 billion a 12 months in the past. However revenues have not but returned to pre-pandemic ranges, whilst shoppers head again to shops to clean up their closets.
The corporate additionally kept away from providing an outlook for the complete 12 months. It stated it nonetheless faces uncertainty from the Covid pandemic, making forecasting shopper demand all of the harder.
Covid-related disruption to the lingerie maker’s provide chain can also be anticipated to extend freight and product prices by as a lot as $100 million within the fall season, hitting fourth-quarter profitability, Victoria’s Secret stated.
Telsey Advisory Group lowered its worth goal on Victoria’s Secret inventory to $73 from $76, on the heels of the outcomes. Gross sales got here in mild within the newest quarter and the retailer’s third-quarter steerage was beneath consensus estimates, analyst Dana Telsey stated in a observe to shoppers.
Tub & Physique Works, meantime, stated its gross sales within the newest interval totaled $1.70 billion, a 54% enhance from 2019 ranges.
The maker of lotions and hand sanitizers has seen heightened demand for its merchandise in the course of the pandemic. The corporate added that it’s optimistic about its fall and vacation lineup of merchandise, which ought to drive momentum within the again half of the 12 months.
Wells Fargo analyst Ike Boruchow maintained an $80 worth goal on the inventory, saying Tub & Physique Works stays a “best-in-class story” within the retail trade at this time.
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