Victoria’s Secret stock falls on weak outlook

Victoria’s Secret shares fell after the company forecasted FY24 net sales to be about 6 billion dollars or down low-single digits below LSEG estimates of 6.18 billion dollars and adjusted operating income to be about 250 million dollars to 275 million dollars.

First quarter 2024 net sales are expected to decrease mid-single digits compared to estimated 1.95 percent drop and adjusted operating income is expected to be in the range of 10 million dollars to 35 million dollars.

“Sales trends during the quarter were volatile by week, but we were encouraged by the improving quarterly sales trend in North America. We were particularly pleased with our early holiday sales in November and during the peak days and weekends leading up to Christmas, both in our stores and through digital channels,” said the company’s CEO Martin Waters.

The company's net income increased to 181 million dollars or 2.29 dollars per diluted share for the fourth quarter, while operating income rose to 258 million dollars. Adjusted net income for the quarter was 204 million dollars or 2.58 dollars per diluted share, and adjusted operating income was 283 million dollars.

Net sales of 2.082 billion dollars for the fourth quarter, increased 3 percent, while comparable sales decreased 6 percent.

The company reported full year net income of 109 million dollars or 1.39 dollars per diluted share, while operating income dropped tot 246 million dollars. Adjusted net income was 178 million dollars or 2.27 dollars per diluted share and adjusted operating income was 327 million dollars.

The company reported net sales of 6.182 billion dollars, a decrease of 3 percent with comparable sales down 9 percent.