Victoria’s Secret delivers robust Q4 but CEO warns of ‘near-term headwinds’
Victoria’s Secret & Co. reported a solid holiday quarter with better-than-expected earnings and sale, but — similar to most other retailers — it issued soft guidance for the current year.
“As we begin the new year, we recognize the macro environment is uncertain and consumer confidence has shifted,” the company stated. “In addition, much of the U.S. experienced unseasonal weather creating an additional headwind to start the year.”
For the first quarter, the lingerie giant forecast sales of $1.3 billion to $1.33 billion, below analysts estimates of $1.39 billion. For the full year, it expects sales of $6.2 billion to $6.3 billion, also below analysts’ estimates.
[READ MORE: Consumer confidence down sharply in February]
“As we look forward to 2025 and the future, we recognize there are near-term headwinds and ongoing uncertainty in the macro environment which we will manage aggressively while also working to build upon our solid foundation, realize the full potential of our brands and drive long-term, sustainable growth,” said Hillary Super, who took the reins as CEO in September.
Victoria’s Secret’s net income rose 6.8% to $193.4 million, or $2.33 a share, for the quarter ended Feb. 1, from $181.1 million, or $2.29 a share, in the year-ago period. Adjusted earnings per share came to $2.60 a share, well above analysts’ estimates of $2.30 a share.
Sales increased 1.1% to $2.11 billion, above estimates. Comparable sales rose 5%, more than expected.
“I am pleased with the strength of our fourth quarter holiday results, which saw sales up in both our Victoria’s Secret and PINK brands and our powerhouse beauty business,” stated Super. “Sales increased across most major merchandise categories, in our stores and digital channels, and in both our North America and International businesses. We won in the big moments of the quarter and gained more than our fair share of the traffic in the mall and online."
Victoria’s Secret has a global footprint of more than 1,380 retail stores in nearly 70 countries.
