US' Victoria's Secret posts $24 mn in net income in Q3 FY22

In Q3 FY22, the company’s operating income was $43 million, which was above the high-end of the previously communicated guidance range of $10–$40 million. This result compares to operating income of $108 million in the third quarter of FY21, Victoria’s Secret said in a press release.

Net sales were $1.318 billion for the third quarter of FY22, a decrease of 9 per cent compared to net sales of $1.441 billion in the prior-year third quarter. Total comparable sales for Q3 FY22 decreased 11 per cent compared to Q3 FY21.

The company’s gross profit in the third quarter of FY22 was $457,372 thousand, compared to $565,067 thousand in the corresponding period of previous fiscal.

Victoria's Secret is forecasting fourth quarter 2022 net sales to decrease in the high-single digit range compared to last year’s fourth quarter net sales of $2.175 billion. At this forecasted level of sales, operating income is expected to be in the range of $240–$290 million. Net income for the fourth quarter 2022 is estimated to be in the range of $2–$2.45 per diluted share.

The company is forecasting full year 2022 net sales to decrease 6–7 per cent compared to last year’s full year net sales of $6.785 billion. At this forecasted level of sales, adjusted operating income is expected to be in the range of $525–$575 million, or approximately 8–9 per cent of sales. Adjusted net income for the full year 2022 is estimated to be in the range of $4.50–$4.95 per diluted share.

“At our Investor Day in October, we discussed our strategic growth plan which outlines significant runway ahead guided by our three key principles: strengthen our core, ignite growth, and transform the foundation. Led by our two category-defining brands and merchandise leadership positions in intimates and beauty, we remain confident in our ability to deliver our long-term financial targets, reinvest in our business, and return value to our shareholders. Further evidence of our commitment to drive long-term value, we recently announced our agreement to acquire AdoreMe, Inc. (“Adore Me”), a technology-led, digitally native intimates brand … a move that strategically positions us for accelerated growth. We are excited for the opportunity to leverage Adore Me’s expertise and technology to improve our customer shopping experience and accelerate the modernisation of our digital platform. This is just one example of how we are committed to executing on our strategic growth plan,” said Martin Waters, chief executive officer.

Fibre2Fashion News Desk (DP)