Victoria’s Secret price target lowered to $23 from $25 at BMO Capital

BMO Capital analyst Simeon Siegel lowered the firm’s price target on Victoria’s Secret to $23 from $25 after its Q2 earnings miss but keeps an Outperform rating on the shares. Q1 trends of International outperforming against Conversion and average unit retail, or AUR, remaining down and targeted promos continuing have persisted in Q2, and the firm maintains that at its current gross margins, Victoria’s Secret is better served to “Sell Less and Charge More to Earn More”, the analyst tells investors in a research note, adding that while its gross margin has materially improved, it is still well below peer average in the high-40%s.