US' Victoria's Secret posts net income of $1 mn in Q1 FY23

The company’s adjusted net income for Q1 FY23 was $22 million, or $0.28 per diluted share, a sharp drop from the $97 million, or $1.11 per diluted share, in Q1 FY22. Similarly, adjusted operating income was $55 million, a drop from the $116 million recorded in Q1 FY22, Victoria’s Secret said in a press release.

Net sales for Q1 FY23 were reported to be $1.407 billion, marking a decrease of 5 per cent compared to net sales of $1.484 billion in the prior year's first quarter. The company's total comparable sales for the first quarter of 2023 fell 11 per cent compared to Q1 FY22.

“The first quarter continued to be a volatile macro environment for our customer and as the quarter progressed business became more challenging. Sales were in-line with our original expectations; however, we were more promotional than planned and ended the quarter at the lower-end of our adjusted operating income guidance. Sales performance was particularly challenging in our core categories where there was significant decline in the overall stores and digital intimates market in North America,” said Martin Waters, chief executive officer.

Victoria's Secret has revised its for FY23. It now expects net sales to be in the range of flat to down low-single digits compared to last year's net sales of $6.344 billion. The company projects the adjusted operating income rate for FY23 to be between 5 per cent and 6 per cent.

Looking forward to Q2 FY23, the company is predicting net sales to decrease in the mid-single-digit range compared to last year’s second quarter net sales of $1.521 billion. With this level of projected sales, the company expects the adjusted operating income for Q2 FY23 to be between $35 million and $65 million. The company also estimated its adjusted net income for Q2 FY23 to be in the range of $0.10 to $0.40 per diluted share.

Fibre2Fashion News Desk (DP)