Victoria's Secret (VSCO) Likely to Surpass Earnings Projections: Key Information Before Q4 Announcement

Victoria's Secret Q4 2026 Earnings Preview: What to Expect

Analysts on Wall Street anticipate that Victoria's Secret (VSCO) will report lower earnings compared to the previous year, despite an increase in revenue for the quarter ending January 2026. While consensus forecasts are closely watched, the actual results versus these expectations often play a significant role in determining the stock's short-term movement.

If Victoria's Secret surpasses these key estimates in its upcoming earnings release, scheduled for March 5, the stock could see upward momentum. Conversely, missing expectations may put downward pressure on the share price.

Management's commentary during the earnings call will be crucial in shaping investor sentiment and future outlook. However, understanding the likelihood of an earnings beat can provide valuable insight ahead of the report.

Current Analyst Estimates

Victoria's Secret, known for its lingerie, sleepwear, and beauty products, is projected to announce quarterly earnings of $2.46 per share, reflecting a 5.4% decline from the same period last year. Revenue is forecasted to reach $2.24 billion, marking a 6.4% increase year-over-year.

Trends in Estimate Revisions

Over the past month, the consensus earnings estimate for the quarter has remained steady, indicating that analysts have not significantly altered their outlook. It's important to note that individual analyst revisions may not always be evident in the overall consensus figure.

Price, Consensus, and EPS Surprise

Insights from Earnings ESP

Changes in analyst estimates ahead of earnings releases can offer clues about business trends. The Zacks Earnings ESP (Expected Surprise Prediction) model compares the Most Accurate Estimate to the consensus, with the most recent estimate often reflecting the latest information.

A positive Earnings ESP reading suggests the potential for an earnings beat, especially when paired with a Zacks Rank of #1 (Strong Buy), #2 (Buy), or #3 (Hold). Historically, stocks with this combination have delivered a positive surprise nearly 70% of the time, and a strong Zacks Rank further enhances the model's predictive power.

It's important to remember that a negative Earnings ESP does not necessarily predict a miss, and the model is less reliable for stocks with negative ESP readings or lower Zacks Ranks (#4 or #5).

Victoria's Secret: What the Numbers Indicate

For the upcoming quarter, the Most Accurate Estimate for Victoria's Secret is higher than the consensus, resulting in an Earnings ESP of +2.44%. The stock currently holds a Zacks Rank of #3 (Hold), suggesting a favorable chance of exceeding consensus EPS estimates.

Reviewing Past Earnings Surprises

Analysts often consider a company's track record of meeting or beating estimates when forecasting future results. In the previous quarter, Victoria's Secret was expected to post a loss of $0.60 per share but reported a smaller loss of $0.27, delivering a positive surprise of 55%. Over the past four quarters, the company has surpassed consensus EPS estimates three times.

Key Takeaways

While beating or missing earnings estimates can influence a stock's movement, other factors may also impact performance. Some stocks decline despite an earnings beat, while others rise even after a miss due to unexpected catalysts.

Nevertheless, focusing on stocks likely to exceed earnings expectations can improve the odds of investment success. Checking a company's Earnings ESP and Zacks Rank before earnings releases can be a useful strategy. Consider using the Earnings ESP Filter to identify promising opportunities.

Victoria's Secret appears well-positioned for an earnings beat, but investors should also weigh other factors before making a decision ahead of the report.

Industry Comparison: Abercrombie & Fitch

Abercrombie & Fitch (ANF), another retailer in the same industry, is expected to report quarterly earnings of $3.56 per share, a slight decrease of 0.3% year-over-year. Revenue is projected at $1.67 billion, up 5.3% from the prior year. The consensus EPS estimate for Abercrombie has been revised upward by 0.6% in the last 30 days, but its Earnings ESP stands at -0.70%, making an earnings beat less certain. Notably, Abercrombie has exceeded consensus EPS estimates in each of the last four quarters.

Stay informed about upcoming earnings releases with the Zacks Earnings Calendar.

Should You Consider Investing in Victoria's Secret & Co. (VSCO)?

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Victoria's Secret & Co. (VSCO): Free Stock Analysis Report

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This article was originally published by Zacks Investment Research.

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