Victoria's Secret initiates review of non-core brand, shares fall

Shares of lingerie maker Victoria’s Secret VSCON> down ~4% at $57.30 premarket

VSCO initiates a strategic review of its non-core clothing brand, DailyLook, to focus more on its core brands, Victoria’s Secret and PINK

Says it continues to assess Adore Me business and is exploring opportunities to optimize it within the broader portfolio

Forecasts annual sales above estimates, banking on marketing efforts to boost demand

Expects fiscal 2026 sales at $6.85 billion to $6.95 billion, vs. analysts' estimates of $6.80 billion - data compiled by LSEG

Posts Q4 sales of $2.27 billion, vs. estimates of $2.23 billion

Reports Q4 adjusted net income of $2.77 per share, vs. estimates of $2.52 per share

Despite VSCO's upbeat quarter and strong annual sales view, expectations had run up, explaining the pre-market pressure, says Simeon Siegel, analyst at Guggenheim Securities

As of last close, stock up nearly 11% YTD