Victoria’s Secret scores first annual revenue growth since its spin-off, but weak sales outlook sinks shares
The lingerie and sleepwear giant topped Q4 estimates, but expects slower sales growth this year.
Shares of Victoria’s Secret sank 9% late Thursday afternoon, just a day after the popular lingerie brand reported its first annual sales growth since splitting from L Brands in 2021.
The mall retailer posted earnings per share of $2.60, topping FactSet analyst estimates of $2.30. Net sales inched up 1% to $2.10 billion, surpassing expectations, while comparable sales rose 5%, beating forecasts of 3.8%. Full-year sales rose 1% to a better-than-expected $6.8 billion.
Victoria’s Secret’s PINK apparel line saw a major turnaround in the fall, with momentum carrying through the holiday season. CEO Hillary Super, who has been leading the company’s push to win back younger shoppers since she took the helm in September, said on the earnings call that Gen Z shoppers have also warmed up to the brand. Super was poached from Rihanna’s Savage X Fenty brand to steer the company in a more modern direction, and brought back the famous fashion show with a more inclusive runway in October.
Looking ahead, Victoria’s Secret expects first-quarter net sales between $1.30 billion and $1.33 billion, coming in below FactSet estimates of $1.35 billion. For the full year, the retailer is factoring in a 10% tariff on China-made goods, which could knock $10 million to $20 million off operating income. Shares are down about 51% so far this year.
