Yahoo Finance Victoria's Secret (VSCO) Announces Partnership With Google Cloud
Victoria's Secret & Co. VSCO recently announced a multi-year strategic partnership with Google Cloud to enhance online shopping experiences globally and improve operational efficiency. The decision to collaborate was driven by Google Cloud's strong proficiency in AI security practices and its adaptability in integration.
Within this collaboration, the company aims to harness Google Cloud’s AI and generative AI technologies to develop a novel conversational assistant that provides personalized product recommendations. Constructed on Google Cloud's AI platform, Vertex AI, the chatbot intends to deliver individualized advice based on unique preferences and experiences.
The partnership supports the integration of Adore Me's technology (acquired in December 2022) to fast-track the modernization of VS&Co’s digital platform.
Recognizing the substantial potential of AI in enhancing the online shopping experience, VSCO is actively exploring the incorporation of Google Cloud's advanced AI technologies into internal operations. This vision encompasses leveraging AI in marketing, customer sentiment analysis and supply chain optimization.
Victoria’s Secret and Victoria’s Secret PINK plan to refine their website and mobile app by integrating Google Cloud’s Vertex AI Search for retail technology. This innovative integration aims to elevate the retailer’s search and recommendation capabilities, aligning with Google's standards and facilitating quicker product discovery for shoppers.
The company has a positive outlook on technological advancements and believes that maintaining essential partnerships with Google Cloud (for delivering exceptional customer experiences) will continue to be vital for VSCO’s core operations and success.
Price Performance
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In the past three months, shares of Victoria's Secret have surged 56.8% compared with the industry’s 18.5% growth. The company has been benefitting from growth in average basket size and traffic. Also, the emphasis on a reimagined merchandise strategy for the PINK brand bodes well. Considering the pent-up demand and sales momentum, the company anticipates the fourth quarter sales to rise 2-4% on a year-over-year basis. Attributes of multi-tender loyalty programs, digital platform enhancements, new product launches and unit expansion efforts are likely to aid the company in the upcoming periods. Earnings estimates for 2024 have remained unchanged in the past 30 days.
Zacks Rank & Key Picks
Victoria's Secret currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Zacks Consumer Discretionary sector are as follows:
Virco Mfg. Corporation VIRC sports a Zacks Rank #1 (Strong Buy). VIRC has a trailing four-quarter earnings surprise of 188.6% on average. VIRC’s shares have surged 150.7% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for VIRC’s 2024 sales and earnings per share (EPS) indicates a rise of 15.7% and 32.4%, respectively, from the year-ago period’s levels.
Stride, Inc. LRN carries a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 44.3% on average. Shares of LRN have surged 75.8% in the past year.
The Zacks Consensus Estimate for LRN’s 2024 sales and EPS indicates a rise of 9.1% and 34.7%, respectively, from the year-ago period’s levels.
American Public Education, Inc. APEI sports a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 23.2% on average. Shares of APEI have declined 14.5% in the past year.
The Zacks Consensus Estimate for APEI’s 2024 sales and EPS indicates a rise of 2.5% and 115.8%, respectively, from the year-ago period’s levels.
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Victoria's Secret & Co. (VSCO) : Free Stock Analysis Report
