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Investing.com – Victoria’s Secret stock fell 4% while Bath Body Works (NYSE:BBWI) Works surged 7% as the two retailers reported their first earnings following their separation.
Both companies were earlier part of L Brands, but Victoria’s Secret was spun off earlier this month.
Victoria’s Secret is valued at $6.57 billion while Bath & Body Works has a market cap of $16.33 billion.
Net sales at Victoria’s Secret were $1.61 billion for the second quarter compared to $1.07 billion for same period last year. They were 5% higher than the 2019 quarter levels.
Bath & Body Works’ net sales were $1.704 billion compared to $1.25 billion in the second quarter of 2020. Relative to the 2019 quarter, sales were 54% higher.
The company is forecasting third-quarter earnings per share between 55 cents and 60 cents, which excludes one-time costs related to the spin-off of Victoria’s Secret, compared to adjusted 2020 EPS of 83 cents from continuing operations.
A few brokerages put out their targets for the two stocks today. Deutsche (DE:DBKGn) raised the target for Bath & Body Works to $75 while Credit Suisse (NYSE:CS) to $67.
BofA Securities (NYSE:BAC) sees Victoria’s at $90.
