Victoria’s Secret posts mixed Q1 results, says tariffs will ding profitability by $50 million
The lingerie retailer reported stronger sales, but missed EPS estimates as it works to stabilize its business.
Victoria’s Secret posted mixed Q1 results Thursday morning that showed better-than-expected revenue growth, but the company cut its full-year outlook for profitability, saying it would be hurt by tariffs.
Shares edged 0.5% lower in early premarket trading.
For the quarter, Victoria’s Secret reported a net loss of $0.02 per diluted share, missing Wall Street’s estimates of $0.04 in earnings. On the bright side, revenue came in at $1.35 billion, above Wall Street’s forecast of $1.32 billion and the company’s own guidance of $1.30 billion to $1.33 billion.
The company reiterated its full-year sales outlook but said its adjusted operating income guidance took a hit because it expects $50 million of net negative tariff impacts.
The company also forecast second-quarter results generally below expectations. It sees revenue of $1.38 billion to $1.41 billion and adjusted earnings per share of $0.00 to $0.15. For comparison, analysts were expecting sales of $1.415 billion and earnings of $0.30.
For the first quarter, comparable-store sales fell 1%, signaling continued softness in the brand’s core retail business.
Shares are down 45% year to date.
