Victoria’s Secret, the renowned lingerie giant, has experienced a successful comeback in 2021, surpassing expectations with a 25% increase in annual sales and strong revenue growth in the fourth quarter. The company, based in Reynoldsburg, Ohio, reported net sales of $6.785 billion for the year, exceeding the $5.413 billion generated in 2020. Additionally, comparable sales saw a 3% rise.

In a remarkable turnaround, Victoria’s Secret achieved a net income of $646.4 million in 2021, compared to a net loss of $72.3 million the previous year. This impressive performance led to diluted earnings per share of $7.18, compared to a loss per share of $0.82 in 2020. CEO Martin Waters expressed his satisfaction with the company’s accomplishments, emphasizing the significance of 2021 as Victoria’s Secret transitioned into a public company.

Waters attributed their success to several factors, including the dedication of their team, a customer-focused approach, excellence in the lingerie category, and a commitment to environmental and social responsibility. Despite acknowledging the challenges posed by the inflationary environment of 2022, Victoria’s Secret remains confident in its ability to overcome obstacles and drive growth through the implementation of new initiatives.

During the fourth quarter of 2021, Victoria’s Secret achieved sales of $2.175 billion, representing a 4% increase and surpassing earlier sales guidance. Comparable sales for the quarter also witnessed a 1% rise compared to the same period in 2020. However, there was a decline in quarterly net income, with the company reporting $246.1 million, or diluted earnings per share of $2.70, compared to $282.4 million, or earnings per share of $3.20, the previous year. Despite this dip, the company expressed satisfaction with the results, considering the challenging retail landscape.

Waters commended Victoria’s Secret associates worldwide for their efforts in executing the company’s financial goals while simultaneously transforming the brand, enhancing the customer experience, and solidifying their position as a dominant player in the intimates category.

Additionally, Victoria’s Secret announced the approval of a new share repurchase program, allowing the company to buy back up to $250 million of its common stock. This move reflects the company’s confidence in its future prospects and commitment to creating value for its shareholders.

Victoria’s Secret’s return to profitability and impressive sales growth in 2021 serve as a testament to the brand’s resilience and adaptability within the ever-changing retail industry. As the company continues to evolve and navigate new challenges, its unwavering commitment to providing an exceptional customer experience and leading the lingerie market remains steadfast.

Sources:
1. [Victoria’s Secret Annual Report](insert link here)
2. [Victoria’s Secret News Release](insert link here)