Victoria's Secret raises guidance following a significant quarterly beat
Victoria's Secret posted quarterly results that largely exceeded Wall Street estimates, while raising its full-year targets, which triggered almost a 40% surge in the stock as the market opened. The group benefited from stronger-than-anticipated demand, a reduction in certain tariff-related costs, and a decreased reliance on promotional activity. CEO Hillary Super highlighted double-digit growth across all business segments, driven notably by bras, the brand's strategic core category.
The company now forecasts annual net sales of $7.03bn to $7.13bn, up from its previous range of $6.85bn to $6.95bn. Adjusted operating income is expected to reach between $550m and $580m, more than $100m above its previous guidance. According to management, this improvement is attributed to higher-than-expected sales, better fixed-cost absorption, and the easing of certain customs charges following the cancellation of several tariffs.
For Q1, ended May 2, Victoria's Secret reported net income of $47.7m, or $0.56 per share, compared to a loss a year earlier. Excluding exceptional items, EPS reached $0.60, vs. the $0.30 expected by analysts. Revenue grew by nearly 15% to $1.56bn, while comparable sales increased by 13%. The group believes its repositioning strategy - combining a strengthened lingerie offering, beauty expansion, the relaunch of Pink, and the optimization of its store network - is beginning to yield tangible results.
Victoria's Secret & Co. is a specialty retailer of women's intimate and other apparel and beauty products marketed under the Victoria's Secret, PINK, and Adore Me brand names. The Company offers a range of products including bras, panties, lingerie, sleepwear, apparel, sport and swim, as well as prestige fragrances and body care. Victoria's Secret brand offers bras, panties, lingerie, sleepwear, swim, lounge and sport, as well as fragrances and body care. PINK is a lifestyle brand for young women providing vibrant color, fun designs, feel-good fashion offers include apparel, sleepwear, sleepwear, swim, beauty and accessories. Adore Me is a direct-to-consumer lingerie and apparel brand that is focused on serving women across all and budgets, it provides a digital subscription-based styling service offering women's apparel and accessories. The Company operates as a single segment serving customers across multiple regions through integrated store and digital channels.
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