Victoria Secret flags flags profit pressure, and continue to classify them amid the opposite tariff and electronic opposite – Victoria Secret (NYSE: VSCO)

TELSEY Consulting Group analyst Dana Tele Repeat the confirmation of the market performance classification Victoria Secret and Partners Vsco With a price of $ 24.

On Wednesday, the company informed the profits of the average in the first quarter of one share of 9 cents, which is in line with the estimation of the analyst’s consensus. The quarterly sales of $ 1.35 billion (a year -on -year surface) also came with Fio Street.

Victoria Secret reduced the modified operating income directions in the fiscal year 2025 to a range ranging from 270 million dollars to 320 million dollars, a decrease from its previous expectations from 300 million dollars to 350 million dollars.

Also read: Victoria Secret to navigate the unstable total environment, the analyst reduces expectations

The company also expected sales of the second quarter of $ 1.38 billion and 1.41 billion dollars, slightly less than $ 1.42 billion.

Telsey pointed out that although sales instructions in the second quarter were almost in line with expectations, profit expectations were involved in the previous consensus, which had already been taken in obtaining electronic successes of $ 10 million and another $ 10 million of customs tariffs.

Given the constant pressures of macro and uncertainty about the impact of the collective tariff for the whole year, the analyst remains cautious about the company, while recognizing progress in the product and messages, but it highlights the continuous need to re -put the brand in a competitive and slow growth market.

Telsey referred to this while Secret in Victoria It has taken steps to reduce the strike from the definitions, higher rates, which are assumed by 30 % for China and 10 % in other places, will have an effect in the second quarter and beyond, compared to the assumptions made in expectations in the fiscal year 2025.

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The company expects a total impact of $ 120 million for this year, with a already reduced $ 70 million, leaving a net of $ 50 million that can fly more than 100 basis points of the total margin, including $ 6 million in the second quarter due to timing restrictions.

The rest is expected to spread equally between the third quarter and the fourth quarter.

The analyst pointed out that Victoria’s Secret has worked with suppliers to reduce costs, diversify sources, reduce dependence on China (now in low numbers), improve charging efficiency, and shift from comprehensive discounts to the most targeted promotional offers such as gift events.

Telsey has reduced estimates, which are now expected the fiscal year 2025 profitability of $ 2.10, down from its previous expectations of $ 2.22.

For the fiscal year 2026, the analyst expects the arrow’s profit from $ 2.25, it has been revised from 2.38 dollars previously and slightly less than the previous consensus of $ 2.31.

Price work: VSCO shares are traded by 5.48 % to $ 19.85 in the last selection Thursday.

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