Victoria’s Secret lifts guidance as Q3 sales rise 9% to $1.47bn
Adjusted operating income was breakeven, ahead of expectations for a loss of $35m (£26.2m) to $55m (£41.2m), and adjusted net loss fell to $22m (£16.5m)
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Victoria’s Secret has raised its full-year forecasts after reporting third-quarter net sales of $1.47bn (£1.1bn) – up 9% on last year – alongside an operating loss of $19m (£14.2m) and a net loss of $37m (£27.7m), both narrower than a year earlier.
The retailer said revenue for the 13 weeks to 1 November surpassed its guidance range of $1.39bn (£1.04bn) to $1.42bn (£1.07bn), as comparable sales rose 8%. The operating loss improved from $47m (£35.2m) last year, while net loss narrowed from $56m (£42m).
Story Stream: More on Guidance
Adjusted operating income was breakeven, ahead of expectations for a loss of $35m (£26.2m) to $55m (£41.2m), and adjusted net loss fell to $22m (£16.5m).
Hillary Super, chief executive of Victoria’s Secret, said: “Net sales increased 9% over last year, driven by strength across Victoria’s Secret, PINK and Beauty, and supported by momentum across channels and geographies.
“With two iconic brands, Victoria’s Secret and PINK, a curated product assortment, high-emotion marketing and a relentless customer focus, we are reinforcing our leadership in global intimates and beauty.”
Scott Sekella, chief financial and operating officer of Victoria’s Secret, added: “Building on strong first-half results, our third quarter exceeded expectations. We delivered robust adjusted gross margin expansion of 170 basis points, driven by a reduced promotional approach and higher regular-priced selling, while leveraging the strength of our business model.
“We remain focused on managing costs while prioritizing investments in product innovation, brand strength, and customer experience.”
Victoria’s Secret now expects full-year net sales of between $6.45bn (£4.84bn) and $6.48bn (£4.86bn), up from earlier guidance of $6.33bn (£4.75bn) to $6.41bn (£4.81bn). Adjusted operating income is forecast at $350m (£262m) to $375m (£281.5m), compared with previous guidance of $270m (£202.6m) to $320m (£240.2m).
Meanwhile, fourth-quarter sales are projected at $2.17bn (£1.63bn) to $2.2bn (£1.65bn), compared with $2.1bn (£1.58bn) last year. Adjusted operating income is expected to range from $265m (£199m) to $290m (£217m). The company said last year’s results included a $26m (£19.5m) benefit from a change in accounting estimate for gift-card redemptions.
