Victoria’s Secret: Q1 Guidance Up

The new Shine Strap Lace Push Up Bra on the Victoria’s Secret website.

Victoria’s Secret reported preliminary first quarter results for its sales, adjusted operating income and adjusted earnings per share that were “at the high end or above guidance.”

Adjusted operating income for the three months ended May 4 is expected to be in the $35 to $40 million range versus the previously predicted $10 million to $35 million. Net sales are expected to be down 3% to 4% as opposed to 4% to 6%.

“I am encouraged by our preliminary view of results and the sequential improvement in quarterly sales trends,” declared CEO Martin Waters.  “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. In stores, our customer traffic improved noticeably throughout the quarter, and in our digital business, the investments we’ve made to improve the customer experience resulted in digital sales performance outpacing stores. 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. Our brands are strong around the globe and our partners are executing the strategy at a very high level.”