Victoria’s Secret & Co. (NYSE: VSCO) said that it has acquired a minority stake in Frankies Bikinis, LLC, a beachwear and lifestyle brand located in Venice, California. Shares of VSCO gained 3.2% on Friday to close at $53.16.
Victoria’s Secret is a specialty retailer of lingerie, pajamas, and beauty products with prestige fragrances and body care.
Victoria’s Secret has invested about $18 million for a minority interest. Also, it does not expect this investment to have any material impact on the first quarter 2022 guidance provided previously.
“Our investment in Frankies Bikinis is a continuation of our efforts to expand partnerships with culturally relevant brands founded by women entrepreneurs,” said, Martin Waters, CEO at Victoria’s Secret.
Founder and Creative Director Francesca Aiello said, “With Victoria’s Secret beside us, Frankies Bikinis will continue to deliver our signature collections that encourage customers to explore their personal style and create looks unique to themselves that make them feel their most confident.”
Earlier this month, Wells Fargo analyst Ike Boruchow maintained a Buy rating on Victoria’s Secret and lowered the price target to $75 from $85. The new price target implies 41.1% upside potential from current levels.
The analyst remains optimistic about the stock, as he finds the fundamentals of the turnaround to be on track.
Consensus among analysts is a Strong Buy based on five Buys and one Hold. VSCO’s average price target stands at $76.40 and implies upside potential of 43.7% to current levels.
TipRanks’ Website Traffic tool, which uses data from SEMrush Holdings (SEMR), the world’s biggest website usage monitoring service, offers insight into VSCO’s performance.
According to the tool, the Victoria’s Secret website recorded a 15.2% monthly decrease in global visits in February, compared to the previous year. Likewise, the website traffic has declined 49.4% year-to-date against the same period last year.
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