Victoria's Secret & Co reported a 1 per cent Y-o-Y decline in net sales to $1.417 billion in Q2, FY24.
Total comparable sales of the Reynoldsburg, Ohio-based company declined by 3 per cent during the quarter ended Aug 3, 2024. The lingerie giant posted a net income of $32 million for the second quarter.
Timothy Johnson (TJ), Interim CEO and CFO, notes, the financial results for the second quarter came in at the high end of expectations, and the company delivered year-over-year quarterly operating income growth for the first time since 2021. It was encouraged by the continued sequential improvement in quarterly sales results in North America for the fourth consecutive quarter, with sales trends improving in both stores and digital channels.
The company attributed its success to the launch of new collections like the Victoria’s Secret Dream bra, the Pink Friday back-to-campus event, and the steady growth of VS Sport. These initiatives led to better product acceptance, disciplined inventory management, and an increase in gross margin dollars and rate expansion. Additionally, the International business and Adore Me brand saw high-single-digit sales growth.
Looking ahead, Victoria's Secret predicts third quarter net sales to expand by a low-single-digit as against last year's third-quarter sales of $1.265 billion. The brand’s adjusted operating income is projected to range between $275 million and $300 million as against the previous outlook of $250 million to $275 million.
