VS Earns $32.1M In Q2

A VS Sport image on the Victoria's Secret website.

In the second quarter, Victoria’s Secret earned $32.141 million on sales of $1.417 billion compared to a loss of $872,000 on sales of $1.427 billion in the three months ended July 29, 2023.

Interim CEO and CFO Timothy Johnson noted the company “delivered year-over-year quarterly operating income growth for the first time since 2021,” adding “we were encouraged by the continued sequential improvement in quarterly sales results in North America for the fourth consecutive quarter, as sales trends improved in both our stores and digital channels. Our customers responded to new merchandise deliveries and events with particular success in the launch of our Victoria’s Secret Dream bra collection, in apparel with our PINK Friday back to campus event in late July and consistent, steady improvement of VS sport as merchandise flowed to stores and digital.”

“improving product acceptance and disciplined inventory management led to gross margin dollar growth and rate expansion,” said Johnson, noting that “in addition to improving trends for Victoria’s Secret and PINK, we experienced sales growth in the high-single digits for both our International business and Adore Me.”

"We are encouraged our North America business trends have continued to improve as we’ve moved through August and the start of the third quarter,” said Johnson. “Early customer feedback on our fall assortments is encouraging for both the Victoria’s Secret and PINK brands, and our beauty business has continued solid performance and is driving traffic to our stores. Strategically, we have several exciting events planned for the balance of the third quarter including a major VSX sport launch and the return of our Victoria’s Secret Fashion show to kickoff the all-important holiday season. While we are optimistic about the positive signs we’re seeing in our business, we recognize the consumer environment remains challenging and our customer is pressured economically. We remain focused on what we can control which is leveraging our market position in intimates and delivering on multiple initiatives to drive growth in our business over the longer-term.”

For the full year, VS “is now forecasting 52-week fiscal year 2024 net sales to be down approximately 1%, compared to prior guidance of down low-single digits, to a comparative 52-weeks from fiscal year 2023. At this forecasted level of sales, adjusted operating income for fiscal year 2024 is now expected to be in the range of $275 million to $300 million, compared to prior guidance of $250 million to $275 million.”

As of August 3 the company was operating 793 VS and Pink stores in the U.S., as well as 23 additional stores in Canada, for a company-owned total of 816. A joint venture in China was operating a total of 70 stores as of the same date; and partner operated stores around the world totaled 481. There were also six AdoreMe stores.