Victoria’s Secret Stocks have surprised market analysts with its performance on Wall Street. Analysts have upgraded the stock from Underweight to Equal Weight. What brought about this revival of the company?
Victoria’s Secret Stocks are soaring high! An unexpected outcome for market analysts as it was underperforming for the last 6 years. The company has undergone a notable revival since new leadership took the helm. The company is returning to core brand values, focusing on product innovations and improved merchandise margins.
Victoria’s Secret Stocks Performance
Victoria’s Secret & Co. (NYSE:VSCO) were trading higher than previous estimates. Barclay Analyst Adrienne Yih upgraded Victoria’s Secret Stocks to Equal Weight from the Underweight category. The stock price was also revised from $23 to $25. The stock upgrade has further brought optimism in its long-term potential as it has already passed its most challenging phase.
This is not an ordinary surge. The company has been reeling under poor stock performance for the last 6 years. Victoria’s Secret holds about 20% of the U.S. intimate apparel market and this sudden stock performance shows people’s renewed trust in the company. This became a reality due to the new leadership apparel industry’s management and applying innovative product strategies.
Victoria’s Secret Stocks Buy Ratings
Analysts have improved Victoria’s Secret buy ratings. Jefferies analyst Corey Tarlowe awarded a Buy rating with a price target of $30 to Victoria’s Secret Stocks. This upgraded rating was awarded based on the company’s excellent expense management, and recent outperformance. Successful product launches and market strategies also contributed to its shares’ positive sentiment.
All this happened as the company returned to its origins, which is why people identify Victoria’s Secret as a brand.
Victoria’s Secret Stocks: Fashion Show Comeback
Victoria’s Secret made headlines recently by once again hosting Victoria’s Secret Fashion Show after a gap of 6 years. In its iconic style, the fashion show hosted music artists and star-studied fashion models. With this simple gesture, Victoria’s Secret Stocks rose to an all-time high of 7%.
The fashion show re-established brand resilience attracting younger customers from its competitors Skims and Arrie.
The new leadership with their new strategy is on the way to a new financial forecast. The company is looking for a single-digit year-over-year increase in net sales for Q3. They have also adjusted loss per share between $0.60 and $0.80. Through these initiatives market analysts are confident that Victoria’s Secret will recover lost sales and improve profitability by the end of the next quarter.
Victoria’s Secret Stocks: Key Growth Areas
The company moving forward is focussing on majorly three major areas for improvement. These include:
Adherence to Core Values
The organization is emphasizing brand loyalty, re-discovering brand identity, and focusing on customer feedback while moving forward.
Product Innovation
Company products are being revitalized in real-time. For instance, the PINK line products such as offerings in swimwear and activewear are being expanded.
Cultural Relevance
The company is reshaping its identity by paying attention to past criticisms regarding diversity and inclusivity. This will reshape its brand image and regain valuable consumer trust.
Victoria’s Secret Stocks:
Victoria’s Secret Stocks created waves with its upsurged prices. With the new owners at the helm taking strategic maneuvers for brand revival, reconnecting with the customer base, and re-starting cultural initiatives such as fashion shows, the company is on the way to turning its fortunes and regaining its past glory.
Investors have welcomed these changes as an opportunity to further invest in the company. They are optimistic that the company has an unreserved latent potential and will recover in the following years.
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