(Filed Under wholesale Lingerie News). Victoria’s Secret reported a second quarter loss of $1.428 million on sales of $1.427 billion, compared to a profit of $69.926 million on sales of $1.521 billion in the 13 weeks ended July 30, 2022.

“The macro environment continues to put pressure on our customer base and our core intimates categories,” said CEO Martin Waters, adding, “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.”

On a positive noted he revealed “our outlook calls for improving sales trends throughout the fall season. We entered the third quarter with relatively lean inventory levels, and I am encouraged by August sales trends which were better than July, second quarter and the entirety of the spring season.”

Looking ahead he pointed to “Initiatives such as our new multi-tender loyalty program, a reimagined merchandise strategy for our Pink brand, new technology to enhance the customer experience, the launch of our Victoria’s Secret Icon bra, and coming in September the Victoria’s Secret World Tour ’23 which will be our largest marketing investment in the last five years.”

Victoria’s Secret said it is “forecasting third quarter 2023 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. At this forecasted level of sales, adjusted operating loss for the third quarter of 2023 is expected to be in the range of $45 million to $75 million.” It added that it “is forecasting full year 2023 net sales to decrease in the low-single digit range compared to last year and we expect the adjusted operating income rate to be in the range of 5% to 6% of net sales, consistent with the current analyst consensus estimate which reflects a net sales decrease of approximately 2% compared to full year 2022 and an adjusted operating income rate of approximately 5.5% of net sales.” — NM

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Published 09-07-2023 by Nick Monjo