Victoria’s Secret & Co. has announced a decrease in sales for the third quarter, particularly in its North American market. The company reported a 9% decline in revenues, totaling $1.318 billion, primarily driven by a double-digit decrease in comparable store sales. However, there was growth in the international business, with international revenues reaching $163.5 million, a significant increase of 43%. On the other hand, North America revenues fell to $1.6 billion, down from $1.3 billion in the previous year.

Despite the decline in sales, Victoria’s Secret stated that the results were in line with their expectations, as they had previously communicated a high-single-digit decline compared to the third quarter of the previous year. The company reported an 11% decrease in comparable sales for the third quarter compared to the same period in 2021.

In terms of net income, the lingerie company reported $24 million, or $0.29 per diluted share, for the third quarter. This exceeded the high end of the previously communicated guidance range of $0.00 to $0.25 per diluted share. However, there was a decline compared to the third quarter of 2021, which reported a net income of $75 million, or $0.81 per diluted share.

CEO Martin Waters commented on the company’s performance, highlighting the significant progress made in their transformation and mission to celebrate and champion all women. Despite the challenging macroeconomic environment, Victoria’s Secret was able to deliver third-quarter operating income and earnings per diluted share above their previous guidance. Waters emphasized the solid financial platform that has been created through a new, more agile operating structure. He expressed confidence in the company’s ability to achieve their long-term financial targets and return value to shareholders.

Waters also mentioned the company’s growth plan, which focuses on strengthening the core business, igniting growth, and transforming the foundation. As part of this strategy, Victoria’s Secret recently announced their agreement to acquire AdoreMe, Inc., a technology-led, digitally-native intimates brand. This acquisition is expected to accelerate the company’s growth and enhance the customer shopping experience through leveraging Adore Me’s expertise and technology.

Looking ahead, Victoria’s Secret projects a decline in net sales of 6% to 7% for the full year of 2022 compared to the previous year’s net sales of $6.785 billion. Despite the challenges posed by a shifting consumer landscape and a challenging macroeconomic environment, the company remains committed to executing their strategic growth plan and delivering long-term value.

Links:
1. Victoria’s Secret Official Website
2. AdoreMe Official Website