03:41 PM EDT, 08/22/2024 (MT Newswires) -- Victoria's Secret (VSCO) is expected to report "relatively" in-line adjusted earnings per share in Q2, which is unlikely a big catalyst for the stock, after the company's preliminary Q2 adjusted EPS exceeded expectations last week, UBS said in a note emailed Thursday.

UBS expects Victoria's Secret to report Q2 adjusted EPS of $0.37, compared with the consensus estimate of $0.35, and sales decline of 1.5% to $1.41 billion, in line with the consensus. The firm's sales estimate was driven by ongoing weakness in the core North America business, partially offset by mid-teens growth in international sales, according to the note.

"While we doubt Q2 is a meaningful stock catalyst, we anticipate [Victoria's Secret's] stock to underperform peers over the [next twelve months]," UBS added.

UBS also expects Victoria's Secret to increase its fiscal 2024 operating outlook to incorporate its Q2 results that could beat its original guidance.

"However, we believe this is mostly reflected in Street EPS estimates and thus expect the sell-side's $1.91 [fiscal 2024] forecast to stay near current levels," UBS said.

Victoria's Secret will report its Q2 financial results on Aug. 28.

UBS maintained its sell rating and $13 price target on Victoria's Secret's stock.

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