Despite the drop in sales, Victoria’s Secret achieved a notable turnaround in profitability. The company reported a net income of $32 million, or $0.40 per diluted share, for the quarter. This represents a significant improvement from the net loss of $1 million, or $0.02 per diluted share, reported in Q2 FY23, the company said in a press release.

Operating income for the quarter also saw a substantial increase, rising to $62 million from $26 million in the same quarter of the previous year.

On an adjusted basis, Victoria’s Secret reported a net income of $31 million, or $0.40 per diluted share, for Q2 FY24. This was slightly above the company’s preliminary estimates, which had projected adjusted net income per diluted share in the range of $0.34 to $0.39. Adjusted operating income for the quarter was $62 million, aligning with the upper end of the preliminary range of $57 million to $62 million. In comparison, the second quarter of FY23 saw an adjusted net income of $19 million, or $0.24 per diluted share, and adjusted operating income of $49 million.

“Our financial results for the second quarter came in at the high end of expectations and we delivered year-over-year quarterly operating income growth for the first time since 2021. We were encouraged by the continued sequential improvement in quarterly sales results in North America for the fourth consecutive quarter, as sales trends improved in both our stores and digital channels,” said interim chief executive officer and chief financial and administrative Officer Timothy (TJ) Johnson.

Fibre2Fashion News Desk (DP)