Victoria’s Secret Cybersecurity Breach A Significant Concern: Analyst

Telsey Consulting Analyst Dana Tilsie maintained the market performance classification Victoria Secret and Partners (NYSE: VSCO) with price expectations of $ 24.

On Tuesday, the company informed the breach of cybersecurity, which caused its website to take a three -day internet site in late May, hardly hit the fashion industry.

Also, the company informed preliminary results in the first quarter and witnessed revenues of $ 1.35 billion (compared to a consensus of $ 1.33 billion) and a quarter of a modified share of 9 cents (opposite the street of four cents).

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This is compared to the previous guidance of the net sales of $ 1.30 billion-1.33 billion dollars and the modified EPS range from the loss of 10 cents to a profit from 10 cents.

The analyst is encouraged through the best preliminary results than the company, which indicates the continuation of the momentum despite a slow start in January.

However, the cyber security incident is a great concern. Telsey noted that VSCO is unable to reach the systems for full profit report may cause it to be postponed.

Given that digital sales were about 33 % in the past year, the analyst believes that closing the prolonged site during anniversary sales may have a meaningful effect.

While the first quarter showed a positive momentum, the analyst emphasized that the unknown repercussions of the electronic attack can weigh in the second quarter and the second half with the emergence of details.

With this new incident, the ongoing challenges of the macroeconomic economy, and the effects of fluid tariffs, the analyst remains cautious on the company.

Despite the steps in the product and messages, Telsey believes that the brand still needs to be reinforcing it more successfully in its very low -growing class.

Consequently, the analyst has reduced estimates and now the FY25 EPS projects at $ 2.22, a decrease of $ 2.35 previously, which compares $ 2.69 last year and the previous consensus of $ 2.22.

Also, EPS FY26 estimate is reduced to $ 2.38 from $ 2.58, for a previous consensus of $ 2.35.

PriceVSCO shares are traded by 0.84 % to $ 20.10 in the last selection Wednesday.

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