Victoria's Secret: Economic uncertainty dampens early 2025 projections
Victoria's Secret store in Rimini, Italy Credits: Victoria's Secret Lingerie retailer Victoria’s Secret & Co reported net sales of 2.106 billion dollars for the fourth quarter of 2024, up 1 percent, while comparable sales increased 5 percent. The company’s net income for the quarter increased to 216 million dollars or 2.60 dollars per diluted share and operating income rose to 299 million dollars but as far as its outlook is concerned, a cautious tone prevailed. CEO Hillary Super expressed satisfaction with the holiday results, which saw sales up in both our Victoria’s Secret and Pink brands and beauty business. “Sales increased across most major merchandise categories, in our stores and digital channels, and in both our North America and International businesses,” Super said. However, the company acknowledged near-term challenges, citing economic uncertainty, shifting consumer confidence, and unseasonal weather impacting early 2025 performance. Consequently, the company anticipates a decline to 1.30 billion dollars to 1.33 billion dollars in its first quarter net sales and adjusted operating income to be in the range of 10 million dollars to 30 million dollars. Although the company anticipates a gradual improvement in market conditions and aims to drive growth across its North American and international businesses, Super emphasized the need to "manage aggressively" in the face of "near-term headwinds and ongoing uncertainty" to achieve long-term growth. The company is forecasting fiscal year 2025 net sales to be in the range of 6.2 billion dollars to 6.3 billion dollars and adjusted operating income in the range of 300 million dollars to 350 million dollars.
Lingerie retailer Victoria’s Secret & Co reported net sales of 2.106 billion dollars for the fourth quarter of 2024, up 1 percent, while comparable sales increased 5 percent.
The company’s net income for the quarter increased to 216 million dollars or 2.60 dollars per diluted share and operating income rose to 299 million dollars but as far as its outlook is concerned, a cautious tone prevailed.
CEO Hillary Super expressed satisfaction with the holiday results, which saw sales up in both our Victoria’s Secret and Pink brands and beauty business. “Sales increased across most major merchandise categories, in our stores and digital channels, and in both our North America and International businesses,” Super said.
However, the company acknowledged near-term challenges, citing economic uncertainty, shifting consumer confidence, and unseasonal weather impacting early 2025 performance. Consequently, the company anticipates a decline to 1.30 billion dollars to 1.33 billion dollars in its first quarter net sales and adjusted operating income to be in the range of 10 million dollars to 30 million dollars.
Although the company anticipates a gradual improvement in market conditions and aims to drive growth across its North American and international businesses, Super emphasized the need to "manage aggressively" in the face of "near-term headwinds and ongoing uncertainty" to achieve long-term growth.
The company is forecasting fiscal year 2025 net sales to be in the range of 6.2 billion dollars to 6.3 billion dollars and adjusted operating income in the range of 300 million dollars to 350 million dollars.
