Victoria’s Secret names marketing chief; expects $10M Q2 hit from cyber breach
Victoria’s Secret & Co. narrowed its loss and reported flat sales amid a “challenging environment.”
The lingerie giant reported its first-quarter results the day after one of its biggest investors, BBRC International, sent a letter to the company calling for a board overhaul in the wake of “consistently poor decisions.” Victoria’s Secret did not reference the letter during its earnings call.
During the call, CFO Scott Sekella said that the retailer expects to take a $10 million hit in its second-quarter operating income from the cyberattack that shut down its website from Wednesday, May 28 – Thursday, May 29.
In other news, Victoria’s Secret appointed Elizabeth Preis as chief marketing officer, effective May 27. She most recently served as global chief marketing officer at Anthropologie.
First Quarter
The company narrowed its net loss to $2 million, or $0.02 per share, for the quarter ended May 3, compared to a net loss of $4 million, or $0.05 per diluted share, in the year-ago period. Adjusted net income was $7 million, or $0.09 per share, topping analysts’ estimates of $0.04 a share.
Net sales totaled $1.353 billion compared to $1.359 billion for the first quarter of 2024. Total comparable sales decreased 1%.
In the earnings statement, CEO Hillary Super noted the “challenging and fast-changing environment,” and said the company was focused on “proactively managing the business ensuring we are remaining nimble and protecting investments in what matters most — the customer experience, brand health and product innovation.”
“I am pleased with the strength the business demonstrated during the March and April timeframe, which included continued momentum in our powerhouse Beauty business, ongoing strength in Pink apparel, and newness in sport and swim as we reclaim our position as a full lifestyle brand,” said Super.
For the full year, the company maintained its forecasted net sales range of $6.2 billion to $6.3 billion. Adjusted operating income is now expected to be in the range of $270 million to $320 million, compared to its previous guidance range of $300 million to $350 million. The revised outlook reflects an updated estimated net tariff impact of approximately $50 million for fiscal year 2025.
“Though we recognize the macro environment is uncertain, we will continue to be disciplined in controlling costs and will remain agile, reading and reacting to what the customer is telling us to ensure we are building upon our solid foundation and realizing the full potential of our globally recognized brands,” said CFO Sekella.
Victoria’s Secret ended the quarter with a total of 1,387 stores, incuding 772 company-operated locations.
