Victoria’s Secret recorded a slight increase in sales in the second quarter of the financial year. The lingerie giant then increased its total annual forecast.
In the thirteen-week period that ended on August 2, the company’s net turnover rose by three percent compared to the previous year, from $ 1.42 billion (1.22 billion euros) to $ 1.46 billion. The management found that this was above the expectations mentioned above. The entire comparable sales also increased by four percent.
Sales were particularly strong in the company’s international business. There was an increase of 21.8 percent compared to the previous year. While sales in the North American shops rose by 3.1 percent, the company’s direct sales dropped by 5.5 percent. The operating result also fell from $ 41 million to $ 62 million. The net profit amounted to $ 16 million compared to $ 32 million in the previous year.
Victoria’s Secret noted that the numbers were influenced by various factors. This includes taking over Adore Me and the ongoing restructuring of the management team. Without taking these factors into account, the company’s operating result amounted to $ 55 million and was therefore above the communicated forecast.
Total annual forecast raised,
In view of the more positive sales development in the quarter, the company raised its forecast for the full year of $ 6.2 to $ 6.3 billion. Victoria’s Secret now expects a total annual turnover of 6.33 to $ 6.41 billion.
Furthermore, an adjusted operating result in the range of $ 270 to $ 320 million is expected. This includes net customs loads of around $ 100 million, $ 50 million higher than in the previous forecast.
Hillary Super, CEO of Victoria’s Secret, said the results reflected “First progress in our ‘Path to Potential’ strategy”. This is “driven by product innovations, innovations and further developed storytelling, which appeals to both existing and new customers: inside”.
Scott SECELLA, CFO and Chief Operating Officer, added that this was the first quarter under the brand’s new management team. Their influence “ensures considerable dynamics when we go to the second half of the year”.
“Although we are aware that the macroeconomic environment is still unsafe, we are happy about the new product and customers: internal experiences that we have planned for the second half of the year,” said SECELLA.
This article was used with digital tools translated.
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