Victoria's Secret Boosts Fiscal-Year Guidance Again as Turnaround Pays Off

Dow Jones
09/03
 
 

Victoria's Secret raised its outlook for the year again as it sees its turnaround plan working, and eyes room for further improvement ahead.

The bra retailer said Thursday it now expects sales of $7.1 billion to $7.18 billion for the year, up from its prior forecast of $7.03 billion to $7.13 billion.

The company, which also owns the PINK brand for teens and young adults, also forecast sales of $1.57 billion to $1.6 billion for the current third quarter. Analysts polled by FactSet expect $1.57 billion.

The guidance came as the company reported better-than-expected profit in the second quarter, as sales gained 10%. Chief Executive Hillary Super said the results were driven by broad-based growth across the business as the company's strategy pays off.

"Our brands are stronger and more relevant, our customer file is growing, and we are gaining market share as product, brand identity, storytelling and execution are all working together," Super said.

Victoria's Secret sees further opportunity ahead, and is doubling down on the parts of its plan that are working, she said. The company is investing more in marketing, and plans to roll out more new products, partnerships and campaigns, she said, highlighting an upcoming docuseries and a bigger version of its signature fashion show.

"We are incredibly excited about the back half of the year and the opportunity to continue building both of these iconic brands," Super said.

Victoria's Secret's second-quarter profit came in at $183 million, or $2.18 a share, compared with $16.2 million, or 20 cents a share, a year earlier.

The company said it received tariff refunds of more than $140 million in the quarter, representing nearly all of the tariffs it paid under the International Emergency Economic Powers Act.

Adjusted earnings per share--which strips out certain one-time items, including the tariff refunds--were 95 cents, topping analyst estimates of 77 cents.

Sales increased to $1.61 billion, compared with analyst estimates of $1.62 billion.

Same-store sales rose 9%, roughly in line with Wall Street's projection.

 
 

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