The US lingerie provider Victoria’s Secret & Co. suffered losses in sales and earnings in the 2023/24 financial year. This emerges from current figures that the company published on Wednesday evening. Because management expects a further decline in sales for the current year, the group’s share price fell by more than 30 percent.
In the most recent fiscal year, which ended on February 3, the parent company of the Victoria’s Secret, Pink and Adore Me brands had sales of 6.18 billion US dollars (5.67 billion euros). This means that revenues fell short of the previous year’s level by 2.6 percent. On a like-for-like basis they fell by eight percent.
The result fell even more significantly. The operating profit shrank by 48.6 percent to 245.6 million US dollars, the annual surplus attributable to the shareholders even fell by 68.6 percent and amounted to 109.2 million US dollars (100.2 million euros).
Management predicts a further decline in sales in the current year
However, the group experienced a slight upward trend in the final quarter, which included the important Christmas business. Thanks to strong growth in foreign and online business, sales exceeded the previous year’s level by 3.0 percent and reached $2.08 billion. Net income attributable to shareholders grew 4.7 percent to $181.1 million.
For the current 2024/25 financial year, management expects a decline in sales to around 6.0 billion US dollars. Operating profit adjusted for special items is expected to reach around $250 to $275 million.