Victoria's Secret & Co. Reports 5% Increase in Q4 Comparable Sales, Exceeds Operating Income and EPS Expectations

Victoria's Secret & Co. reports 5% sales growth in Q4, surpasses expectations, and provides 2025 financial guidance.

Quiver AI Summary

Victoria’s Secret & Co. reported robust financial results for the fourth quarter and fiscal year ended February 1, 2025, with comparable sales increasing by 5% and operating income exceeding expectations. Net sales for the fourth quarter reached $2.106 billion, up 1% year-over-year, while net income rose to $193 million, or $2.33 per diluted share. CEO Hillary Super expressed optimism about the company's performance during the holiday season, highlighting strong sales across its brands, particularly in the beauty segment. Looking ahead, the company provided initial guidance for fiscal year 2025, projecting net sales between $6.2 billion and $6.3 billion, amidst an uncertain macroeconomic environment and challenges in consumer confidence. The company expects incremental sales and income growth while managing potential headwinds aggressively. Additionally, a call is scheduled for March 6, 2025, to discuss these results further.

Potential Positives

• Fourth quarter comparable sales increased by 5%, signaling strong performance across major merchandise categories, including both the Victoria's Secret and PINK brands.
• Operating income for the fourth quarter exceeded expectations at $268 million, an increase from the previous year's $258 million, demonstrating effective cost management and operational execution.
• The company provided initial full year and first quarter 2025 guidance, indicating proactive management and confidence in future sales growth despite macroeconomic challenges.

Potential Negatives

• Comparable sales for the full fiscal year 2024 were flat, indicating a lack of growth in overall sales performance.
• The company faces near-term headwinds and ongoing uncertainty in the macro environment, potentially impacting future sales and performance.
• The forecast for first quarter 2025 net sales indicates a decrease compared to the prior year, which may reflect challenges in maintaining sales momentum.

FAQ

What were Victoria's Secret's fourth quarter 2024 comparable sales?

Total comparable sales increased by 5% for the fourth quarter of 2024.

How did net income compare year-over-year for fiscal year 2024?

Net income for fiscal year 2024 increased to $165 million from $109 million in 2023.

What is the sales outlook for the first quarter of 2025?

Net sales are forecasted to be between $1.30 billion and $1.33 billion in Q1 2025.

What factors contributed to Victoria's Secret's performance in 2024?

Strong sales across major merchandise categories and effective cost management contributed to the performance.

What are Victoria's Secret's full year 2025 sales expectations?

The company expects net sales in the range of $6.2 billion to $6.3 billion for fiscal year 2025.

Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.

$VSCO Insider Trading Activity

$VSCO insiders have traded $VSCO stock on the open market 1 times in the past 6 months. Of those trades, 1 have been purchases and 0 have been sales.

Here’s a breakdown of recent trading of $VSCO stock by insiders over the last 6 months:

• DONNA JAMES purchased 1,000 shares for an estimated $21,433

To track insider transactions, check out Quiver Quantitative's insider trading dashboard.

$VSCO Hedge Fund Activity

We have seen 171 institutional investors add shares of $VSCO stock to their portfolio, and 168 decrease their positions in their most recent quarter.

Here are some of the largest recent moves:

• PRIMECAP MANAGEMENT CO/CA/ removed 1,654,683 shares (-93.4%) from their portfolio in Q4 2024, for an estimated $68,536,969
• MARSHALL WACE, LLP added 1,620,256 shares (+481.5%) to their portfolio in Q4 2024, for an estimated $67,111,003
• FMR LLC added 1,231,090 shares (+44.7%) to their portfolio in Q4 2024, for an estimated $50,991,747
• POINT72 HONG KONG LTD added 910,008 shares (+inf%) to their portfolio in Q4 2024, for an estimated $37,692,531
• AMERIPRISE FINANCIAL INC removed 902,875 shares (-41.0%) from their portfolio in Q4 2024, for an estimated $37,397,082
• SRS INVESTMENT MANAGEMENT, LLC added 893,542 shares (+inf%) to their portfolio in Q4 2024, for an estimated $37,010,509
• SCHONFELD STRATEGIC ADVISORS LLC removed 854,621 shares (-94.2%) from their portfolio in Q4 2024, for an estimated $35,398,401

To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.

Full Release

Fourth quarter comparable sales increase 5%




Operating Income and EPS exceed expectations




Provides initial full year and first quarter 2025 guidance

REYNOLDSBURG, Ohio, March 05, 2025 (GLOBE NEWSWIRE) -- Victoria’s Secret & Co. (“VS&Co” or the “Company”) (NYSE: VSCO) today reported financial results for the fourth quarter and fiscal year ended February 1, 2025.

“I am pleased with the strength of our fourth quarter holiday results, which saw sales up in both our Victoria’s Secret and PINK brands and our powerhouse Beauty business. Sales increased across most major merchandise categories, in our stores and digital channels, and in both our North America and International businesses. We won in the big moments of the quarter and gained more than our fair share of the traffic in the mall and online. The teams focused on execution and drove healthy margins, controlled costs, and managed inventory levels extremely well in a highly competitive and promotional holiday environment,” said VS&Co CEO Hillary Super.

“During the holiday season we clearly connected emotionally with our customer through our merchandise offering of the accessible luxuries she loves. After my first holiday season with the business, I continue to be optimistic about our future, our opportunity to further differentiate the brands with compelling storytelling and make even deeper emotional connections with our customers. As we look forward to 2025 and the future, we recognize there are near-term headwinds and ongoing uncertainty in the macro environment which we will manage aggressively while also working to build upon our solid foundation, realize the full potential of our brands and drive long-term, sustainable growth.”

Fourth Quarter 2024 Results




The Company reported net sales of $2.106 billion for the 13-week fourth quarter of 2024, an increase of 1% compared to net sales of $2.082 billion for the 14-week fourth quarter of 2023. Total comparable sales for the fourth quarter of 2024 increased 5%.

The Company reported net income of $193 million, or $2.33 per diluted share for the 13-week fourth quarter of 2024. This result compares to net income of $181 million, or $2.29 per diluted share for the 14-week fourth quarter of 2023. Operating income for the 13-week fourth quarter of 2024 was $268 million compared to $258 million in the 14-week fourth quarter of 2023.

Excluding the impact of the items described at the conclusion of this press release, adjusted net income for the 13-week fourth quarter of 2024 was $216 million, or $2.60 per diluted share. This result compares to adjusted net income of $204 million, or $2.58 per diluted share for the 14-week fourth quarter of 2023. Adjusted operating income for the 13-week fourth quarter of 2024 was $299 million compared to $283 million in the 14-week fourth quarter of 2023.

In addition to the items described at the conclusion of this press release, in the fourth quarter of 2024 the Company recorded a change in its accounting estimate relating to expected future redemption on outstanding gift cards issued by the Company. As a result of this change in accounting estimate, the Company recognized a cumulative adjustment which increased net sales, gross margin, and operating income by approximately $26 million in the fourth quarter of 2024.

Excluding the impact from the change in accounting estimate relating to outstanding gift cards, fourth quarter 2024 net sales increased approximately 4%, or at the high-end of our previously communicated guidance range of 3% to 4% (excluding the impact of the extra week in the fourth quarter of 2023), and fourth quarter 2024 adjusted operating income would have been $273 million, or slightly above the high-end of our previously communicated guidance range of $260 million to $270 million.

As a reminder, the Company estimated the extra week in the fourth quarter of 2023 represented approximately $80 million in incremental net sales, approximately $20 million in incremental operating income and incremental net income per diluted share of approximately $0.20.

Full Year 2024 Results




The Company reported net sales of $6.230 billion for the 52-week fiscal year 2024, an increase of 1% compared to net sales of $6.182 billion for the 53-week fiscal year 2023. Total comparable sales for fiscal year 2024 were flat.

The Company reported net income of $165 million, or $2.05 per diluted share for the 52-week fiscal year 2024. This result compares to net income of $109 million, or $1.39 per diluted share for the 53-week fiscal year 2023. Operating income for the 52-week fiscal year 2024 was $310 million compared to $246 million in the 53-week fiscal year 2023.

Excluding the impact of the items described at the conclusion of this press release, adjusted net income for the 52-week fiscal year 2024 was $218 million, or $2.69 per diluted share. This result compares to adjusted net income of $178 million, or $2.27 per diluted share for the 53-week fiscal year 2023. Adjusted operating income for the 52-week fiscal year 2024 was $373 million compared to $327 million in the 53-week fiscal year 2023.

Excluding the impact from the change in accounting estimate relating to outstanding gift cards, fiscal year 2024 net sales increased approximately 2%, or at the high-end of our previously communicated guidance range of 1% to 2% (excluding the impact of the extra week in fiscal year 2023), and adjusted operating income would have been $347 million, or slightly above the high-end of our previously communicated guidance range of $315 million to $345 million.

Full Year and First Quarter 2025 Outlook




As we begin the new year, we recognize the macro environment is uncertain and consumer confidence has shifted. In addition, much of the U.S. experienced unseasonal weather creating an additional headwind to start the year, which is considered in our guidance for the first quarter. The Company is forecasting net sales for the first quarter of 2025 to be in the range of $1.30 billion to $1.33 billion compared to last year’s first quarter net sales of $1.359 billion. At this forecasted level of net sales, adjusted operating income for the first quarter of 2025 is expected to be in the range of $10 million to $30 million.

Looking ahead, our forecast assumes that the environment will gradually get better as we move through the year and as we execute on our strategies designed to grow sales in both our North America and International businesses. The Company is forecasting fiscal year 2025 net sales to be in the range of $6.2 billion to $6.3 billion compared to net sales of $6.204 billion in fiscal year 2024, which excludes the gift card breakage benefit of $26 million recognized in the fourth quarter of 2024. At this forecasted level of net sales, adjusted operating income for fiscal year 2025 is expected to be in the range of $300 million to $350 million.

Forecasted adjusted operating income for the first quarter and full year 2025 excludes the financial impact of purchase accounting items related to the Adore Me acquisition, including expense (income) related to changes in the estimated fair value of contingent consideration and performance-based payments, as well as the amortization of intangible assets. The Company is not able to provide a reconciliation of forward-looking adjusted operating income to the most directly comparable forward-looking GAAP financial measures because the Company is unable to provide a meaningful or accurate reconciliation or estimation of certain reconciling items without unreasonable effort, due to the inherent difficulty in forecasting the timing of, and quantifying, the various purchase accounting items that are necessary for such reconciliation.

Quarterly Earnings Conference Call




Victoria’s Secret & Co. will conduct its fourth quarterearnings callat 8:00 a.m. Eastern on Thursday, March 6, 2025. To listen, call 1-800-619-9066 (international dial-in number: 1-212-519-0836); passcode 5358727. For an audio replay, call 1-800-819-5743 (international replay number: 1-203-369-3828); passcode 2485654 or log onto

www.victoriassecretandco.com

.  The materials accompanying theearnings callhave been posted on the Investors section of the Company’s website. The audio replay will be available approximately two hours after the conclusion of the call.

About Victoria’s Secret & Co.




Victoria’s Secret & Co. (NYSE: VSCO) is a specialty retailer of modern, fashion-inspired collections including signature bras, panties, lingerie, apparel, casual sleepwear, swim, lounge and sport as well as award-winning prestige fragrances and body care. VS&Co is comprised of market leading brands, Victoria’s Secret and PINK, that share a common purpose of supporting women in all they do, and Adore Me, a technology-led, digital first innovative intimates brand serving women of all sizes and budgets at all phases of life. We are committed to empowering our more than 30,000 associates across a global footprint of more than 1,380 retail stores in nearly 70 countries.

Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995

We caution that any forward-looking statements (as such term is defined in the U.S. Private Securities Litigation Reform Act of 1995) contained in this press release or made by us, our management, or our spokespeople involve risks and uncertainties and are subject to change based on various factors, many of which are beyond our control. Accordingly, our future performance and financial results may differ materially from those expressed or implied in any such forward-looking statements, and any future performance or financial results expressed or implied by such forward-looking statements are not guarantees of future performance. Forward-looking statements include, without limitation, statements regarding our future operating results, the implementation and impact of our strategic plans, and our ability to meet environmental, social, and governance goals. Words such as “estimate,” “commit,” “will,” “target,” “goal,” “project,” “plan,” “believe,” “seek,” “strive,” “expect,” “anticipate,” “intend,” “continue,” “potential” and any similar expressions are intended to identify forward-looking statements. Risks associated with the following factors, among others, could affect our results of operations and financial performance and cause actual results to differ materially from those expressed or implied in any forward-looking statements:

• 
  general economic conditions, inflation, and changes in consumer confidence and consumer spending patterns;
  


• 
  market disruptions including pandemics or significant health hazards, severe weather conditions, natural disasters, terrorist activities, financial crises, political crises or other major events, or the prospect of these events;
  


• 
  uncertainty in the global trade environment, including the imposition or threatened imposition of tariffs or other trade restrictions;
  


• 
  our ability to successfully implement our strategic plan;
  


• 
  difficulties arising from changes and turnover in company leadership or other key positions;
  


• 
  our ability to attract, develop and retain qualified associates and manage labor-related costs;
  


• 
  our dependence on traffic to our stores and the availability of suitable store locations on satisfactory terms;
  


• 
  our ability to successfully operate and expand internationally and related risks;
  


• 
  the operations and performance of our franchisees, licensees, wholesalers and joint venture partners;
  


• 
  our ability to successfully operate and grow our direct channel business;
  


• 
  our ability to protect our reputation and the image and value of our brands;
  


• 
  our ability to attract customers with marketing, advertising and promotional programs;
  


• 
  the highly competitive nature of the retail industry and the segments in which we operate;
  


• 
  consumer acceptance of our products and our ability to manage the life cycle of our brands, remain current with fashion trends, and develop and launch new merchandise, product lines and brands successfully;
  


• 
  our ability to integrate acquired businesses and realize the benefits and synergies sought with such acquisitions;
  


• 
  our ability to incorporate artificial intelligence into our business operations successfully and ethically while effectively managing the associated risks;
  


• 
  our ability to source materials and produce, distribute and sell merchandise on a global basis, including risks related to:
  
  
  
  • 
    political instability and geopolitical conflicts;
    
  
  
  • 
    environmental hazards and natural disasters;
    
  
  
  • 
    significant health hazards and pandemics;
    
  
  
  • 
    delays or disruptions in shipping and transportation and related pricing impacts; and
    
  
  
  • 
    disruption due to labor disputes;
    
  
  
  
  


• 
  our geographic concentration of production and distribution facilities in central Ohio and Southeast Asia;
  


• 
  the ability of our vendors to manufacture and deliver products in a timely manner, meet quality standards and comply with applicable laws and regulations;
  


• 
  fluctuations in freight, product input and energy costs;
  


• 
  our and our third-party service providers’ ability to implement and maintain information technology systems and to protect associated data and system availability;
  


• 
  our ability to maintain the security of customer, associate, third-party and company information;
  


• 
  stock price volatility;
  


• 
  shareholder activism matters;
  


• 
  our ability to maintain our credit rating;
  


• 
  our ability to comply with regulatory requirements; and
  


• 
  legal, tax, trade and other regulatory matters.
  

Except as may be required by law, we assume no obligation and do not intend to make publicly available any update or other revisions to any of the forward-looking statements contained in this press release to reflect circumstances existing after the date of this press release or to reflect the occurrence of future events, even if experience or future events make it clear that any expected results expressed or implied by those forward-looking statements will not be realized. Additional information regarding these and other factors can be found in “Item 1A. Risk Factors” in our Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 22, 2024.

For further information, please contact:

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.