Victoria’s Secret & Co. experienced a decline in sales for the second quarter of 2022, primarily stemming from a decrease in customer traffic. The company’s quarterly revenue dropped by 6% to $1.521 billion, compared to $1.614 billion in the same quarter the previous year. This result fell short of the company’s initial guidance and was attributed to sluggish customer traffic trends observed throughout the retail industry during the quarter.

Moreover, total comparable sales for the second quarter also declined by 8% when compared to the same period in 2021. The company’s net income for the quarter amounted to $70 million, or $0.83 per diluted share, marking a decrease from the previous year’s $151 million, or $1.71 per share.

Victoria’s Secret disclosed that its earnings results included a pre-tax charge of $29 million for restructuring actions aimed at enhancing its leadership structure. Excluding this charge, the adjusted net income was $92 million, or $1.09 per diluted share, falling within the previously communicated guidance range of $0.95 to $1.25 per diluted share.

Despite the challenges faced, Victoria’s Secret CEO Martin Waters expressed gratitude for the dedication and hard work exhibited by the company’s team and partners. He underscored the ongoing transformation journey of the company and its commitment to becoming a brand that embraces, celebrates, and champions all women. Waters acknowledged the progress made thus far while recognizing that transformation remains an ongoing process.

Additionally, Waters acknowledged that Victoria’s Secret continues to lead its category within the market and that the brand’s transformation has been well-received by customers. He credited the team’s focused execution for delivering second quarter results that fell within the guidance range, despite a difficult macroeconomic environment.

Moving forward, Victoria’s Secret anticipates customers to face inflationary and financial pressures for the remainder of 2022. The company has adjusted its inventory position and cost structure to adapt accordingly, all while continuing to invest in growth initiatives. With an optimized leadership structure in place, Victoria’s Secret aims to navigate and execute successfully within the evolving consumer landscape.

For the full year of 2022, the company projects a decrease in net sales in the mid to high single-digit range compared to the previous year. Adjusted operating income is expected to be within the range of $525 million to $575 million, which is approximately 8% to 9% of sales.

In conclusion, Victoria’s Secret’s second quarter results exhibited a decline in sales attributed to reduced customer traffic. The company remains committed to its transformation journey and intends to overcome the challenges faced by the retail industry while continuing to invest in growth initiatives.

Useful links related to the article:
Victoria’s Secret Official Website
More Information on Victoria’s Secret Q2 Results