Victoria’s Secret & Co. has announced positive financial results for the fourth quarter and fiscal year ending 1st February 2025, demonstrating significant growth. The company reported a 5 per cent increase in comparable sales during the fourth quarter, signaling robust consumer demand during the holiday season.
Net sales for the quarter reached US $ 2.106 billion, a 1 per cent increase compared to the previous year, despite having one less week in the reporting period. This growth was attributed to strong performance across Victoria’s Secret and PINK brands, as well as the company’s beauty division. Sales saw increases across major product categories, both in physical stores and online and across North America and international markets.
The company’s PINK apparel line showed significant improvement during the fall and holiday seasons, indicating a successful strategy to attract younger consumers. CEO Hillary Super highlighted the brand’s growing appeal among Gen Z shoppers, attributing this success to recent efforts to modernise Victoria’s Secret. Super, who joined the company from Savage X Fenty, reintroduced the iconic Victoria’s Secret Fashion Show with a focus on inclusivity last October.
The company also reported net income of US $ 193 million and for the full fiscal year, net sales reached US $ 6.230 billion. Notably, the company recognised a US $ 26 million increase in net sales, gross margin and operating income due to a change in accounting estimates related to gift card redemptions. Excluding this adjustment, net sales still increased by approximately 4 per cent for the quarter and 2 per cent for the full year, meeting or exceeding previously communicated guidance.
Looking ahead to 2025, Victoria’s Secret & Co. acknowledges the uncertain macroeconomic environment and potential headwinds, including unseasonal weather affecting early sales. However, the company remains optimistic, forecasting net sales for the first quarter to be between US $ 1.30 billion and US $ 1.33 billion and full-year net sales to range from US $ 6.2 billion to US $ 6.3 billion.
The company anticipates adjusted operating income for the first quarter to be between US $ 10 million and US $ 30 million and for the full year to range from US $ 300 million to US $ 350 million. This outlook reflects the company’s confidence in its strategic plans and its ability to navigate the evolving retail landscape.
