Victoria's Secret Delivers Solid Q4 Results, But CEO Warns Of 'Near-Term Headwinds'

Victorias Secret & Co. VSCO shares are trading lower premarket on Thursday after the company reported fourth-quarter results yesterday.

Revenue rose 1% year over year to $2.11 billion, beating the consensus of $2.09 billion.

Total comparable sales for the quarter increased 5%. Holiday results saw sales up in both Victoria’s Secret and PINK brands as well as Beauty business.

Adjusted operating income rose to $299 million from $283 million a year ago quarter.

In the fourth quarter of 2024, the company revised its accounting estimate which led to a cumulative change that increased net sales, gross margin, and operating income by approximately $26 million.

Adjusted EPS of $2.60 beat the consensus of $2.30, vs. guidance for adjusted EPS of $2.00 – $2.30.

CEO Hillary Super said, “Sales increased across most major merchandise categories, in our stores and digital channels, and in both our North America and International businesses. We won in the big moments of the quarter and gained more than our fair share of the traffic in the mall and online.”

“As we look forward to 2025 and the future, we recognize there are near-term headwinds and ongoing uncertainty in the macro environment which we will manage aggressively while also working to build upon our solid foundation, realize the full potential of our brands and drive long-term, sustainable growth.”

Outlook: For the first quarter, Victoria’s Secret expects net sales of $1.30 billion – $1.33 billion vs. consensus of $1.39 billion and adjusted operating income of $10 million – $30 million.

Victoria’s Secret expects FY25 net sales of $6.2 billion – $6.3 billion vs. consensus of $6.34 billion and adjusted operating income of $300 million to $350 million.

Price Action: VSCO shares are down 5.45% at $21.00 premarket at the last check Thursday.

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