(Filed Under wholesale Lingerie News). Victoria’s Secret & Co., which includes Pink, and has now separated from Bath & Body Works, earned $151.08 million on sales of $1.614 billion in the quarter ended July 31, 2021.
In the same quarter ended August 1, 2020, when it was part of L Brands, the company lost $199.53 million on sales of $1.066 billion.
Victoria’s Secret pointed out that sales decreases over the past two years were, in part, due to the “net closure of 240 company-operated stores since the second quarter of 2019.” It added that “the results are on a carve-out basis and include the Victoria’s Secret Segment and a portion of the unallocated overhead costs as part of L Brands.”
“Total comparable sales for the second quarter of 2021 increased 5 percent compared to the second quarter of 2019. Comparable store sales for the second quarter of 2021 decreased 3 percent compared to the second quarter of 2019. Second quarter 2021 sales in the direct channel were $468.8 million, a 24 percent decrease compared to 2020 and a 26 percent increase compared to 2019.”
CEO Martin Waters commented: “Following the finalization of the spin-off from L Brands, our momentum continues, fueled by strong fundamentals: inspiring merchandise she loves, our new brand positioning and disciplined business operations. With tighter inventory management and more emotionally appealing product, we are less promotional, resulting in significant margin increases. As a result, operating income in the second quarter exceeded expectations, helping us deliver our most profitable spring season in five years. Our vital signs are strong and, with our exceptional leadership and associate teams, I continue to be confident in our long-term growth in all channels.”
Looking ahead, the company “is forecasting third quarter 2021 sales to increase in the mid- to high-single digits versus last year’s third quarter sales of $1.35 billion and earnings per share to be in the range of $0.60 to $0.70. Due to the continued uncertainty in the environment, the company is not providing financial guidance for the fourth quarter.” — NM
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