Victoria's Secret (VSCO) shares slumped 26% in 澳洲幸运5官方开奖结果体彩网:extended-hours trading Wednesday evening after the lingerie retailer issued a cautious sales💫 outlook amid soft apparel demand in the North American market.

The company said it sees fiscal year 2024 澳洲幸运5官方开奖结果体彩网:net sales of about $6 billion, falling short of the $6.19 billion figure expected by Wall Street. For the first quarter, Victoria’s Secret projects sales to decrease by mid-single digits from last year’s Q1 sales of $1.407 billion. By comparison, analysts expect the lingerie retailer to post sales in the period of $1.39 billion.

The intimate apparel maker cited a subdued North American outlook for its cautious guidance. “As we look into the new year, we recognize the broader intimates market in North America has been down for four consecutive quarters and we are planning the business appropriately conservative in the near term,” Victoria’s Secret CEO Martin Waters said in the company’s earnings statement.

For the fiscal fourth quarter ended Feb. 3, the company posted 澳洲幸运5官方开奖结果体彩网:adjusted earnings of $2.58 per share, ahead of the $2.46 a share figure expected by analysts. Revenue in the period of $2.08 billion grew 3% from a year earlier, matching the consensus view. The company estimated that the extra week in the quarter added approximately $80 million to the top line. Meanwhile, 澳洲幸运5官方开奖结果体彩网:same store sales in the period slipped 6% versus Wall Street modeling indicating a 6.3% fall.

The apparel manufacturer said that holiday sales were driven by its giftable merchandise assortment, improved customer experiences, and marketing initiatives. The company also announced a new 澳洲幸运5官方开奖结果体彩网:stock buyback program, authorizing the repurchase of up to $250 million of the company’s 澳洲幸运5官方开奖结果体彩网:common stock.

Despite a bullish 澳洲幸运5官方开奖结果体彩网:golden cross pattern forming on the Victoria's Secret chart in late December, the share price has traded mostly sideways since that time. Amid earnings related weakness, it's worth keeping an eye on a key 澳洲幸运5官方开奖结果体彩网:zone of support between $20 and $21.50. A close below this important technical area could potentially open the door to retest of the stock’s 澳洲幸运5官方开奖结果体彩网:record low set in October last year at $13.62.

Victoria's Secret stock fell 26.2% to $18.90 in after-hours trading.

The comments, opinions, and analyses expressed on Investopedia are for informational purposes only. Read our 澳洲幸运5官方开奖结果体彩网:warranty and liability disclaimer for more info.

As of the date this article was written, the author does not own any of the above securities.