US lingerie specialist Victoria’s Secret & Co., which owns the brands Victoria’s Secret, Victoria’s Secret Pink and Adore Me, reports sales of 1.3 billion euros ($1.4 billion) for the second quarter, which corresponds to a decline of 6.2 percent compared to the previous year. Total comparable sales for the second quarter of 2023 fell 11 percent. Operating income for the second quarter of 2023 was €23.9 million (US$26 million) compared to operating income of €90.2 million (US$98 million) for the same period in 2022. The quarter ended July 29, 2023 .
“As expected and continuing trends from the first quarter, second quarter sales performance was particularly challenging across North America brick and mortar lingerie retail, impacting both our Victoria’s Secret and pink businesses during the quarter,” explained CEO Martin Waters.
The loss was particularly severe in the home market, while international business generated sales growth of 25 percent, according to the company. The lingerie supplier and online retailer Adore Me, which was only acquired in January 2023, also recorded sales growth in the second quarter. In total, Victoria’s Secret & Co. operates around 1,350 retail stores in around 70 countries worldwide. Of these, 837 are run by the company itself, with the rest being franchised. 72 stores are operated as a joint venture in China.
The company cannot yet give the all-clear for the third quarter that has just started, although the sales trend is expected to improve somewhat: the company expects a further decline in net sales in the low to mid single-digit range to around 1.2 billion euros (1.3 billion US -Dollar).
CEO Waters continued, “As the second quarter results are in line with our guidance, we expect sales trends to improve for the full fall season. We entered the third quarter with relatively low inventories and given the sales trends in August, which were better than in July for the second quarter and throughout the spring season, I am encouraged.”