Victoria’s Secret & Co., the Ohio-based company known for its Victoria’s Secret Lingerie, Victoria’s Secret Beauty, and Pink brands, recently reported a decline in revenues for the first quarter of this year. The company cited plummeting comparable sales and inflation costs as the primary factors contributing to this decrease. Net sales for the first quarter ending April 30 amounted to $1.484 billion, a 4.5% decline compared to the same period last year. However, this result was in line with the company’s previously communicated guidance range, which predicted a decrease of 4% to 8%.

Despite these challenges, Victoria’s Secret CEO Martin Waters expressed satisfaction with the company’s performance. He highlighted the achievement of delivering sales results at the higher end of their guidance range and better-than-expected adjusted earnings per diluted share. Waters attributed this success to the hard work of the company’s team and the brand’s ongoing revolution and focus on product innovation. Victoria’s Secret has also managed to stabilize the business and generate over $1 billion in earnings before interest, taxes, depreciation, and amortization (EBITDA) over the last twelve months.

Looking forward, Waters expressed confidence in Victoria’s Secret’s ability to maintain its market-leading position in the intimates merchandise category. He emphasized the importance of a focused strategy, a talented workforce, and a strong connection with customers in sustaining and growing the business. The company plans to tackle macro challenges through merchandise and marketing strategies, new business initiatives, and disciplined financial management. Waters reassured stakeholders that the board and the entire team are aligned on their priorities and are working together to create value for shareholders and other stakeholders.

In addition to the earnings update, Victoria’s Secret announced the election of Mariam Naficy to its board of directors. Naficy brings over 20 years of experience in digital and direct-to-consumer retailing, having co-founded Minted, an online marketplace for creative and custom goods. She currently serves as the chair of the board and co-CEO of Minted. With Naficy’s expertise, Victoria’s Secret hopes to benefit from her valuable insights and contribute to the company’s growth.

Despite the challenges posed by inflation costs and declining sales, Victoria’s Secret remains committed to its mission of providing high-quality intimates merchandise and maintaining its position as a market leader. With a dedicated team, innovative product launches, and a strong connection with customers, the company is optimistic about its future success. By addressing macro challenges, exploring new business initiatives, and ensuring disciplined financial management, Victoria’s Secret aims to create value for its shareholders and other stakeholders.

Useful links:
1. Victoria’s Secret Official Website
2. The Mint Julep – Victoria’s Secret Waterloo