Victoria’s Secret swings to loss in second quarter, comps dive 11%

Victoria’s Secret & Co. reported net sales of $1.427 billion for the second quarter, a decrease of 6%, on the back of a double-digit sales decline in its comparable sales for the three months.

The Reynoldsburg, Ohio-based company said total comparable sales during quarter ending July 29 decreased 11% compared to the second quarter of 2022.

As a result of the lacklustre sales performance, the lingerie giant swung to a net loss of $1 million, or $0.02 per diluted share, compared to net income of $70 million, or $0.83 per diluted share for the second quarter of 2022.

“We delivered second quarter sales, adjusted operating income and adjusted diluted earnings per share within our guidance range while the macro environment continues to put pressure on our customer base and our core intimates categories,” said ​​chief executive officer, Martin Waters.

“As anticipated, and what was a continuation of first quarter trends, sales performance in the second quarter was particularly challenging in the overall stores and digital intimates market in North America which impacted both our Victoria’s Secret and Pink businesses in the quarter. In contrast, our international business experienced sales growth in excess of 25% compared to last year and strong profit flow through, and our recently acquired Adore Me brand also grew sales during the quarter highlighting the strength of the business model and unique digital strategies. Our teams were resiliently focused on what was within our control, managing selling margins, diligently controlling costs, and delivering inventory levels at our Victoria’s Secret and Pink businesses down low-double digits compared to last year.”

Looking ahead, the company is forecasting third quarter net sales to decrease in the low- to mid-single digit range, compared to last year’s third quarter net sales of $1.318 billion.