Victoria's Secret Surprises with Preliminary Q1 Results: CEO Bullish Amid Tough Retail Climate

Zinger Key Points
  • Victoria's Secret reports preliminary Q1 FY24 adjusted EPS of $0.07-$0.12, surpassing prior outlook.
  • Sales growth outlook improves, with adjusted operating income expected to rise to $35M-$40M.

Victoria’s Secret & Co. VSCO shares are trading higher after the company reported first-quarter FY24 preliminary results.

The company sees first-quarter FY24 adjusted EPS of $0.07 – $0.12, up from prior guidance of $(0.15) – $0.10 vs. estimate of estimate of loss of $(0.03).

Victoria’s Secret sees sales growth of (3%)-(4%) vs. better than prior guidance of (4%)-(6%) and adjusted operating income of $35 million – $40 million, higher than the outlook of $10 million – $35 million.

The company reaffirmed the outlook of FY24 revenue of approximately $6 billion versus estimates of $6.198 billion.

Victoria’s Secret anticipates an FY24 adjusted operating income of about $250 million-$275 million.

Martin Waters, CEO, said, “We delivered meaningful newness in merchandise and brand projection during the quarter and our customers responded, particularly in April, which was our strongest of the three months.”

“The retail environment in North America remains challenging and the promotional environment was very competitive; however, we experienced improving trends throughout the quarter in both our stores and in our digital business for both the Victoria’s Secret and PINK brands.”

“At the same time, we continue to experience strong growth in our international business as sales increased in the mid-teens again in the first quarter.”

Price Action: VSCO shares are up 6.6% at $19.83 at the last check Friday.

Photo via Wikimedia Commons

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