Victoria’s Secret reports Q1 loss

Victoria’s Secret reported a net loss of 4 million dollars or 5 cents per diluted share for the first quarter of 2024, while operating income dropped to 26 million dollars.

The company’s adjusted net income was 9 million dollars or 12 cents per diluted share, and adjusted operating income was 40 million dollars.

The company reported net sales of 1.359 billion dollars, a decrease of 3 percent, while comparable sales for the quarter decreased 5 percent.

“I am encouraged by our results in the quarter which were at the high-end of our previously announced preliminary results calling for adjusted operating income up to 40 million dollars. We experienced sequential improvement in quarterly sales trends in North America in both our stores and digital business for both the Victoria’s Secret and Pink brands,” said the company’s chief executive officer Martin Waters.

The company is forecasting second quarter net sales to decrease in the low-single digit range, adjusted operating income to be in the range of 30 million dollars to 45 million dollars and adjusted net income to be in the range of 5 cents to 20 cents per diluted share.

The company is reaffirming its full year outlook and is forecasting net sales to be about 6 billion dollars or down low-single digits, adjusted operating income to be about 250 million dollars to 275 million dollars.

Commenting on the outlook, Waters said: “With some caution around the broader retail environment in North America, we are planning the business appropriately conservative in the near-term, but are encouraged by the start to May and the second quarter.”