Victoria’s Secret Reports First Quarter Loss
In a recent update, American lingerie retailer Victoria’s Secret & Co. has reported a decline in revenue and a net loss for the first quarter of the 2024/25 fiscal year. The results, presented by the company on Wednesday evening, met expectations but painted a challenging picture for the brand.
Over the 13 weeks leading up to May 4th, the company, which includes brands like Victoria’s Secret, Pink, and Adore Me, saw a revenue of $1.36 billion (€1.25 billion), marking a three percent decrease compared to the same period last year. On a comparable basis, revenues shrank by five percent.
In North America, revenue in brick-and-mortar stores dropped by 7.2 percent to $729.1 million, while e-commerce sales fell by 3.4 percent to $448.8 million. On a positive note, international business showed growth with a 15.6 percent increase to $181.5 million.
The operating income decreased by seven percent to $26.3 million, resulting in a net loss of $3.6 million (€3.3 million) for shareholders, a significant decline from the $0.7 million profit reported in the same period last year. Adjusted for special items, net income shrank from $21.9 million to $9.1 million.
Despite these challenges, the full-year forecast for 2024/25 remains unchanged. The management anticipates a decrease in revenue to around $6.0 billion and an adjusted operating profit between $250 and $275 million.
For more information:
– Victoria’s Secret meets expectations in the first quarter
– Victoria’s Secret: Annual profit shrinks by almost 69 percent
– Victoria’s Secret continues to report losses in the third quarter
– Victoria’s Secret revises loss forecast thanks to international sales growth
– Victoria’s Secret continues to face losses in the second quarter