Victoria’s Secret & Co. has announced that it expects its third-quarter operating income and earnings per share to be at the high end of its previous guidance range, despite a decline in sales. The company anticipates that its operating income will fall between $10 million and $40 million, while earnings per diluted share will range from $0.00 to $0.25. These estimates are based on a high single-digit decrease in net sales compared to the previous year.

This announcement comes just before Victoria’s Secret’s investor day on October 13, during which the company will outline its strategic growth plans and provide investors with a comprehensive update on its business performance over the past year. CEO Martin Waters expressed enthusiasm for the event, stating that Victoria’s Secret aims to become the leading fashion retailer of intimate apparel worldwide, leveraging its two category-defining brands and its presence in the global market.

In preparation for the presentation, Victoria’s Secret highlighted three strategic growth pillars it plans to focus on. The first pillar, “Strengthen the Core,” involves increasing its market share in key categories such as bras, intimates, and beauty. The company also aims to be more inclusive and appeal to a broader customer base through compelling storytelling both in stores and on digital platforms. The second pillar, “Ignite Growth,” entails expanding its global footprint through partnerships with international retailers and introducing new brands that cater to underrepresented customer groups and categories. Finally, Victoria’s Secret plans to “Transform the Foundation” by creating a modern, efficient organization and investing in its employees and culture.

Waters emphasized that the company has established a solid financial foundation since going public 15 months ago. With its new operational structure in place, Victoria’s Secret is more agile and focused on its customers and strategic priorities. The company is confident in its ability to achieve sustainable long-term sales growth and mid-teens operating margin rates, generating significant cash flow for investments in growth and to create value for its shareholders.

In its recent trading update, Victoria’s Secret reported a 6% decline in revenues for the second quarter, attributing the decrease to reduced consumer traffic. Despite the challenges within the retail environment, the company remains committed to its brand transformation and meeting the expectations of its customers and employees.

Useful Links:
Victoria’s Secret Official Website
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