Last week, the American laundry provider Victoria’s Secret & Co. had to postpone the publication of his final results for the first quarter of the 2025/26 financial year. At the time, a security-relevant incident in the IT system prevented the interim report from being completed timely.
On Wednesday, the parent company of the brands Victoria’s Secret, Pink and Adore Me was now able to present their complete figures. The messengers had no surprises, after all, the company had already published preliminary key data a few days ago. However, management lowered its profit forecast for the year as a whole. This was justified with the expected additional loads due to the recent customs increases.
The corporate turnover goes back slightly
In the first quarter, which was completed on May 3, the group sales were around $ 1.35 billion (1.18 billion euros). This corresponded to a decline of 0.5 percent compared to the same period in the previous year. Nevertheless, the original forecast of management was slightly exceeded.
In the stationary stores in North America, revenues fell by 1.1 percent to $ 721.3 million, and in the online business they decreased by 3.5 percent to $ 433.2 million. A sales increase of 9.3 percent to $ 198.4 million in international business was not sufficient to fully compensate for these losses.
Victoria’s Secret can significantly reduce the loss of the quarter
Despite savings on the operating costs, the launched operational profit fell by 24.7 percent to $ 19.8 million. Adjusted for special effects, he shrank by 20.0 percent to $ 31.7 million and was also slightly above expectations.
However, the group was more than halving its net loss due to the shallow loss of net loss due to lower financing costs and lower tax burdens. He decreased from $ 3.64 million to $ 1.66 million in the previous year. The diluted loss per share dropped from 0.05 to $ 0.02.
Management confirms its sales forecast, but lowers the profit target for the current year
Based on the available figures and current economic policy developments, the group adjusted its annual forecasts. The sales target remained unchanged and is therefore still $ 6.2 to $ 6.3 billion.
However, the forecast for the surgical profit adjusted for special effects, which had previously been $ 300 to $ 350 million, was reduced to $ 270 to $ 320 million. The company justified the step by that due to customs increases, additional costs of around $ 50 million can now be expected.