Victoria’s Secret & Co. reported net sales of US $ 1.417 billion for the second quarter of 2024, reflecting a 1 per cent decrease compared to the previous year.
The Reynoldsburg, Ohio-based company noted that total comparable sales for the quarter ending 3rd August declined by 3 per cent. However, the results were still at the higher end of the company’s projected range. Despite the dip in sales, the lingerie giant achieved a net income of US $ 32 million for the second quarter.
“Our financial performance for the second quarter met the high end of our expectations, marking our first year-over-year quarterly operating income growth since 2021. We were encouraged by the ongoing sequential improvement in North American sales for the fourth consecutive quarter, with positive trends in both our stores and digital channels,” stated Timothy (TJ) Johnson, interim chief executive officer, and chief financial and administrative officer.
This success was driven by the introduction of new collections, such as the Victoria’s Secret Dream bra, the Pink Friday back-to-campus event, and the continued growth of VS Sport. These initiatives led to improved product acceptance, disciplined inventory management, and a corresponding increase in gross margin dollars and rate expansion. Additionally, the company saw high single-digit sales growth in its International business and Adore Me brand.
Looking ahead, Victoria’s Secret is forecasting a low single-digit increase in third-quarter net sales compared to last year’s third-quarter net sales of US $ 1.265 billion.
The company also raised its full-year outlook, now expecting fiscal year 2024 net sales to decline by approximately 1 per cent, an improvement from the previous guidance of a low single-digit decrease. Adjusted operating income is anticipated to range between US $ 275 million and US $ 300 million, up from the earlier forecast of US $ 250 million to US $ 275 million.