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May 03
Victoria's Secret Q1 2025 Earnings Report
Victoria's Secret & Co. reported its first quarter 2024 financial results, with sales, operating income, and EPS at the high end of preliminary estimates.
Key Takeaways
Victoria's Secret & Co. reported a net loss of $4 million for the first quarter of 2024, with net sales of $1.359 billion, a decrease of 3% compared to the prior year. Adjusted operating income was $40 million, at the high end of their preliminary results.
First quarter sales, operating income, and EPS were at the high end of previously announced preliminary results.
The Company experienced sequential improvement in quarterly sales trends in North America for both stores and digital businesses.
Gross margin rate improved compared to last year due to inventory management and disciplined promotional offerings.
International business continued to grow, with net sales increasing in the mid-teens.
Victoria's Secret
Victoria's Secret
Victoria's Secret Revenue by Segment
Revenue by Segment
Stores - North America Revenue
CapyFin.comDirect Revenue
CapyFin.comInternational Revenue
CapyFin.com Forward Guidance
For the second quarter of 2024, the Company forecasts net sales to decrease in the low-single digit range, with adjusted operating income between $30 million and $45 million. The full year 2024 outlook reaffirms net sales of about $6.0 billion and adjusted operating income between $250 million and $275 million.
Positive Outlook
- Reaffirmed full year 2024 outlook for net sales and adjusted operating income.
- Anticipated sequential improvement in sales trends in North America.
- Continued growth expected in the international business.
- Focus on accelerating core business and initiatives to leverage market leadership.
- Proxy advisory firms recommend in favor of all director candidates and stock plan approval.
Challenges Ahead
- Forecasted net sales decrease in the low-single digit range for Q2 2024.
- Anticipated lower adjusted operating income for Q2 2024 compared to Q1 2024 adjusted results.
- Caution around the broader retail environment in North America.
- Promotional environment expected to remain competitive.
- Inherent difficulty in forecasting and reconciling certain purchase accounting items for adjusted financial measures.
Revenue & Expenses
Visualization of income flow from segment revenue to net income