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Victoria’s Secret Stock is Out of the Box

9 20 1

Specialty women's intimate apparel retailer Victoria's Secret (NYSE: VSCO) stock has cratered (-44%) in this year's bear market. The Company was spun-off from the Limited Brands in 2021 with 1,400 retail locations under the Victoria's Secret and PINK brands. The Company beat its EPS estimates handily for its fiscal 2021 managing headwinds including inflationary pressures, supply chain disruptions, weather and market volatility, and rising logistics costs. However, revenues fell (-4.5%) largely due to the reversion from stimulus check spending. Inventory levels ended the quarter up 37% due to longer transit time and strategic assortment decisions to drive future growth. Only 10% of it was carryover inventory. The Company has improved its distribution with the launch of VS&Co. Lab and expects to be a second-half growth story with new product rollouts notably in the bra and beauty lines. Prudent investors that have been waiting for exposure in this iconic intimate wear retailer can watch for opportunistic pullbacks in shares of Victoria's Secret.

Q1 Fiscal 2022 Earnings Release

On May 31, 2022,........

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