Victoria’s Secret unveils growth strategy and reaffirms forecasts

In the run-up to its investor day on Thursday, the US underwear supplier Victoria’s Secret & Co. confirmed the current forecast. The company also presented the cornerstones of its growth strategy.

For the third quarter of the current financial year 2022/23, the company therefore continues to expect a decline in sales “in the high single-digit percentage range” compared to the same period last year. In terms of earnings forecasts, management was a little more confident than last: It is now expecting an operating profit “at the upper end” of the current target corridor of 10 to 40 million US dollars for the quarter that will last until the end of October. Diluted earnings per share are also expected to come in at the upper end of the guidance range of zero to $0.25, according to a statement.

At the same time, the company gave an outlook on the focal points of its “long-term strategic growth plan”. The aim is therefore to expand market shares in the key categories of lingerie and cosmetics. The group brands are to be aligned more inclusively as part of a repositioning in order to appeal to a “broader and more loyal clientele”.

In addition, the lingerie supplier is focusing on global expansion, which is to be promoted primarily through cooperation with international partners. The company also announced the expansion of its brand portfolio. According to a statement, this can happen “organically or through investments”. The focus is on categories and target groups in which the group has so far been “underrepresented”.

“In our first 15 months as a listed company, we have created a solid financial basis. With our new operational structure, we have gained greater flexibility and a sharper focus on clients and our strategic priorities,” said CEO Martin Waters in a statement.

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