Victoria’s Secret & Co slips into red in Q3

The American lingerie, clothing and beauty retailer Victoria Secret & Co, booked a $71m loss in Q3 on the back of lower revenues and higher costs.

Victoria’s Secret & Co saw profits slide in Q3 2023 which is in-line with what the retailer shared as part of its outlook last quarter. Credit: Photograph by Angus Mordant/Bloomberg via Getty Images

For the third quarter ended 28 October 2023, the company reported a 4% decrease in net sales to $1.27bn compared to net sales of $1.32bn in the previous year.

The total sales in stores (North America) and International market were lower 11% and 2.4% respectively when compared to the previous year, however, direct to customer sales increased 11.9%.

The operating loss was $67.12m as opposed to last year’s operating income of $43m.

Last year the retailer turned a $22.2m profit in the third quarter.

The results were in line with expectations assured Martin Waters, chief executive officer at VS&Co, adding that the retailer is encouraged by the improving sales trend as it transitions into the “all-important” holiday season.

Waters said that with the long-term health of the business in mind, VS&Co remains committed to its strategic priorities which include, accelerating core, igniting growth and transforming the foundation.

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He continued: “At our Investor Day in October, we discussed our key focus on accelerating our core, and our initiatives designed to leverage our market leadership position and unlock our opportunity to convert our significant cultural influence into long-term financial growth. We believe our evolving strategies will position the business to deliver the potential of our category-defining Victoria’s Secret and PINK brands, and I believe we have the right leadership team in place at the right time for our business to be successful. We remain confident in our brand repositioning efforts and are committed to delivering our long-term financial targets and returning value to our shareholders.”

The Company is forecasting fourth quarter 2023 net sales to increase in the range of 2% to 4% however, it expects the full year 2023 net sales to decrease in the range of 2% to 3% compared to last year.

In the last quarter, Victoria’s Secret & Co lowered its Q3 sales outlook and expected loss for the period after swinging to a loss during the second quarter (Q2) on lower sales.