REYNOLDSBURG, Ohio and SUNNYVALE, Calif., Jan. 11, 2024 (GLOBE NEWSWIRE) -- Ahead of NRF 2024, the retail industry's largest event, Victoria's Secret & Co. (VS&Co) and Google Cloud today announced a strategic, multi-year partnership. Victoria's Secret & Co. will leverage Google Cloud's AI and generative AI technologies to create more personalized and inclusive online shopping experiences for its global customers. Through this partnership, VS&Co will also leverage Google Cloud's AI technologies to improve cu ...

OR Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _________________________________ FORM 10-Q _________________________________ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended October 28, 2023 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-40515 _________________________________ VICTORIA'S SE ...

Victoria's Secret & Co. (NYSE:VSCO) Q3 2023 Earnings Conference Call November 30, 2023 8:00 AM ET Company Participants Kevin Wynk - Vice President, External Financial Reporting and Investor Relations Martin Waters - Chief Executive Officer Tim Johnson - Chief Financial Officer Conference Call Participants Simeon Siegel - BMO Capital Markets Dana Telsey - Telsey Group Alex Straton - Morgan Stanley Matthew Boss - JPMorgan Alex Shaw - Bank of America Irwin Boruchow - Wells Fargo Mauricio Serna - UBS Kathryn An ...

Financial Performance - In Q2 2023, Victoria's Secret reported an operating income of $26 million, down from $98 million in Q2 2022, with an operating income rate of 1.8% compared to 6.4% last year [111]. - Net sales decreased by $94 million, or 6%, to $1.427 billion in Q2 2023, down from $1.521 billion in Q2 2022, with comparable sales decreasing by 11% [111]. - Adjusted net income attributable to Victoria's Secret was $19 million in Q2 2023, compared to $92 million in Q2 2022 [116]. - Gross profit for Q2 2023 decreased by $48 million to $487 million, with a gross profit rate of 34.1%, down from 35.2% [131]. - Year-to-date 2023 operating income decreased by $138 million to $54 million, with an operating income rate of 1.9%, down from 6.4% [138]. - Total net sales year-to-date 2023 decreased by $171 million, or 6%, to $2.834 billion compared to $3.005 billion in 2022 [142]. Sales Channels - North American store sales fell by $151 million to $817 million, primarily due to decreased traffic, conversion rates, and average unit retail [111]. - Direct channel sales increased by 5%, or $20 million, to $434 million, driven by the inclusion of Adore Me sales starting in fiscal year 2023 [111]. - International sales increased by 26% to $176 million in Q2 2023, compared to $139 million in Q2 2022 [123]. - North America net sales in Q2 2023 decreased by $151 million, or 16%, to $817 million, driven by decreased traffic [128]. - Direct channel net sales increased by $20 million, or 5%, to $434 million, attributed to the inclusion of Adore Me sales [129]. - International channel net sales increased by $37 million, or 26%, to $176 million, due to increased traffic and positive customer acceptance [130]. Expenses and Charges - The acquisition of Adore Me has resulted in pre-tax charges of $18 million in Q2 2023, impacting gross profit and operating expenses [116]. - General, administrative, and store operating expenses increased by $24 million, or 5%, to $461 million, primarily due to Adore Me expenses [134]. - Interest expense for Q2 2023 increased by $11 million to $24 million, driven by higher outstanding debt and borrowing rates [136]. Store Operations - The company operates in nearly 70 countries, with a total of 1,350 stores as of July 29, 2023, after opening 28 and closing 36 stores year-to-date [119]. - The average sales per store decreased by 16% to $947, and sales per average selling square foot decreased by 15% to $138 in Q2 2023 compared to Q2 2022 [118]. Cash Flow and Debt - For the reporting period ended July 29, 2023, net cash used for operating activities was $19 million, an increase of $32 million compared to the same period in 2022 [160]. - Year-to-date 2023, net cash used for investing activities was $143 million, primarily related to capital expenditures [161]. - Year-to-date 2023, net cash used for financing activities was $133 million, consisting mainly of $125 million in share repurchases [164]. - As of July 29, 2023, total long-term debt was $1,270 million, compared to $977 million as of July 30, 2022 [175]. - The company repurchased 2.4 million shares for $125 million under the ASR Agreement in February 2023, with an average price of $34.22 per share [169]. - The principal value of outstanding debt as of July 29, 2023, was $993 million, with an estimated fair value of $838 million [192]. Strategic Focus - The company remains focused on its strategic growth plans, emphasizing strengthening its core, igniting growth, and transforming its foundation despite a challenging macro environment [112]. - The company estimates capital expenditures to be approximately $255 million for fiscal year 2023, focusing on store capital programs and technology investments [163]. Financial Facilities and Compliance - The availability under the ABL Facility as of July 29, 2023, was $254 million, limited by a borrowing base of $579 million [158]. - The ABL Facility has aggregate commitments of $750 million, with borrowings of $295 million outstanding as of July 29, 2023, and an interest rate of 6.98% [179]. - The company is in compliance with all covenants under its long-term debt and borrowing facilities as of July 29, 2023 [180]. - The company amended its Term Loan Facility and ABL Facility in May 2023 to transition from LIBOR to Term SOFR as the reference rate [177]. Currency Exposure - The company has operations in foreign countries, exposing it to foreign currency exchange rate fluctuations, particularly in Canadian dollars and Chinese Yuan [188].

Victoria's Secret & Co. (NYSE:VSCO) Q2 2023 Earnings Conference Call August 31, 2023 8:00 AM ET Company Participants Kevin Wynk - Vice President of External Financial Reporting and Investor Relations Martin Waters - Chief Executive Officer Tim Johnson - Chief Financial Officer Conference Call Participants Matthew Boss - JPMorgan Lorraine Hutchinson - Bank of America Adrienne Yih - Barclays Alex Straton - Morgan Stanley Ike Boruchow - Wells Fargo Marni Shapiro - Retail Tracker Jonna Kim - TD Cowen Corey Tarl ...

Financial Performance - Second Quarter 2023 (Adjusted) - Net sales decreased by 6% to $14269 million compared to $15212 million in 2022[26] - Comparable store sales decreased by 14%[26] - Gross profit decreased by 10% to $4932 million[26] - Operating income decreased by 62% to $487 million[26] - Net income attributable to Victoria's Secret & Co decreased by 79% to $189 million[26] - Net income per diluted share attributable to Victoria's Secret & Co decreased by 78% to $024[26] Financial Performance - First Half 2023 (Adjusted) - Net sales decreased by 6% to $28343 million compared to $30050 million in 2022[28] - Operating income decreased to $1037 million, representing 37% of sales[26] - Net income attributable to Victoria's Secret & Co decreased to $408 million[18] Outlook - The company expects net sales for the third quarter to decrease in the low- to mid-single digits compared to $1318 billion in 2022[23] - The company anticipates adjusted SG&A expense rate for the third quarter to be approximately 38% to 39%, deleveraged from 2022 rate of 315%[23] - The company projects capital expenditures of approximately $255 million for the full year[23]

[Part I. Financial Information](index=4&type=section&id=Part%20I.%20Financial%20Information) [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) Victoria's Secret & Co. experienced a significant decline in Q1 2023 profitability, with net income attributable to the company dropping to $1 million due to decreased net sales and higher operating expenses Consolidated Statements of Income (Q1 2023 vs Q1 2022) | Metric | Q1 2023 (in millions) | Q1 2022 (in millions) | | :--- | :--- | :--- | | Net Sales | $1,407 | $1,484 | | Gross Profit | $502 | $522 | | Operating Income | $28 | $94 | | Net Income Attributable to Victoria's Secret & Co. | $1 | $81 | | Diluted EPS | $0.01 | $0.93 | Consolidated Balance Sheet Highlights | Metric (in millions) | April 29, 2023 | January 28, 2023 | April 30, 2022 | | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | $132 | $427 | $204 | | Inventories | $1,041 | $1,052 | $1,046 | | Total Assets | $4,405 | $4,711 | $4,065 | | Long-term Debt | $1,271 | $1,271 | $977 | | Total Liabilities | $4,118 | $4,310 | $3,814 | | Total Equity | $287 | $401 | $251 | Consolidated Statements of Cash Flows (Q1 2023 vs Q1 2022) | Metric (in millions) | Q1 2023 | Q1 2022 | | :--- | :--- | :--- | | Net Cash Used for Operating Activities | ($108) | ($146) | | Net Cash Used for Investing Activities | ($55) | ($48) | | Net Cash Used for Financing Activities | ($132) | ($91) | | Net Decrease in Cash and Cash Equivalents | ($295) | ($286) | [Notes to Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes detail significant accounting events including the **$537 million** Adore Me acquisition, **$11 million** in restructuring costs, ongoing share repurchases, and the company's debt structure [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=21&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes the Q1 2023 net sales decline and operating income drop to a challenging macro environment, while focusing on strategic pillars and planned capital expenditures - Q1 2023 operating income was **$28 million**, a significant decrease from **$94 million** in Q1 2022, primarily due to a **5%** decrease in net sales and higher general, administrative, and store operating expenses[103](index=103&type=chunk) - Comparable sales (stores and direct) decreased by **11%** in Q1 2023, following an **8%** decrease in Q1 2022[121](index=121&type=chunk) - The company is focused on three strategic pillars: strengthening the core, igniting growth, and transforming the foundation to navigate the challenging environment[104](index=104&type=chunk) Reconciliation of Reported to Adjusted Operating Income (in millions) | Description | Q1 2023 | Q1 2022 | | :--- | :--- | :--- | | Reported Operating Income - GAAP | $28 | $94 | | Restructuring Charge | $11 | — | | Adore Me Acquisition-related Items | $10 | — | | Amortization of Intangible Assets | $6 | — | | Occupancy-related Legal Matter | — | $22 | | **Adjusted Operating Income** | **$55** | **$116** | [Results of Operations](index=24&type=section&id=Results%20of%20Operations) Net sales decreased by **5%** to **$1.407 billion** in Q1 2023, driven by North America store sales decline, partially offset by direct and international channel growth Net Sales by Channel (Q1 2023 vs Q1 2022) | Channel | 2023 (in millions) | 2022 (in millions) | % Change | | :--- | :--- | :--- | :--- | | Stores – North America | $786 | $931 | (16%) | | Direct | $464 | $421 | 10% | | International | $157 | $132 | 19% | | **Total Net Sales** | **$1,407** | **$1,484** | **(5%)** | - The gross profit rate increased to **35.7%** from **35.1%** YoY, driven by lower supply chain costs, but partially offset by increased promotional activity and deleverage in buying and occupancy expenses[125](index=125&type=chunk)[127](index=127&type=chunk) - General, administrative, and store operating expenses increased by **$46 million** (**11%**) primarily due to the inclusion of Adore Me expenses, **$8 million** in restructuring charges, and **$6 million** in amortization of intangible assets[128](index=128&type=chunk) [Financial Condition, Liquidity, and Capital Resources](index=26&type=section&id=FINANCIAL%20CONDITION) The company's liquidity tightened with **$132 million** cash, **$108 million** net cash used in operations, and **$1.271 billion** total long-term debt, while executing share repurchases and planning capital expenditures - Net cash used for operating activities was **$108 million** in Q1 2023, an improvement from **$146 million** used in Q1 2022, mainly due to working capital changes[139](index=139&type=chunk) - As of April 29, 2023, the company had **$295 million** in borrowings outstanding under its ABL Facility, with remaining availability of **$308 million**[84](index=84&type=chunk)[158](index=158&type=chunk) - In February 2023, the company entered into a **$125 million** Accelerated Share Repurchase (ASR) agreement, receiving an initial **2.4 million** shares[63](index=63&type=chunk)[147](index=147&type=chunk) - Capital expenditures are estimated to be approximately **$275 million** for fiscal year 2023, focusing on store capital programs and technology[142](index=142&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=31&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces market risks from foreign currency exchange rates and variable interest rates on its debt, which recently transitioned from LIBOR to SOFR - The company is exposed to foreign currency exchange rate fluctuations from its operations in Canada and China, and from international royalty arrangements[167](index=167&type=chunk)[168](index=168&type=chunk) - Interest rate risk exists due to variable-rate debt under the Term Loan Facility and ABL Facility. As of April 29, 2023, the interest rate on the Term Loan was **8.24%** and on the ABL borrowings was **6.71%**[155](index=155&type=chunk)[158](index=158&type=chunk)[170](index=170&type=chunk) - Subsequent to the quarter-end, in May 2023, the company amended its credit facilities to transition from LIBOR to the Secured Overnight Financing Rate (SOFR) for interest calculations[156](index=156&type=chunk)[159](index=159&type=chunk) [Controls and Procedures](index=32&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded the company's disclosure controls were effective as of April 29, 2023, with ongoing integration of Adore Me into internal controls over financial reporting - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of the end of the first quarter of 2023[174](index=174&type=chunk) - The company is integrating Adore Me into its internal controls over financial reporting, which is the only notable change to internal controls during the quarter[175](index=175&type=chunk) [Part II. Other Information](index=33&type=section&id=Part%20II.%20Other%20Information) [Legal Proceedings](index=33&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various lawsuits, but management does not expect them to materially affect its financial position or results of operations - The company states that current legal proceedings are not expected to have a material adverse effect on its financial position or results of operations[179](index=179&type=chunk) [Risk Factors](index=33&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the company's risk factors have occurred since the 2022 Annual Report on Form 10-K filing - No material changes to risk factors have occurred since the filing of the 2022 Annual Report on Form 10-K[180](index=180&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=33&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During Q1 2023, the company repurchased **2.651 million** shares, including an initial delivery under an ASR agreement, with **$150 million** remaining for future repurchases Common Stock Repurchases in Q1 2023 | Period (2023) | Total Shares Purchased (in thousands) | Average Price Paid per Share | Maximum Value for Future Purchases (in thousands) | | :--- | :--- | :--- | :--- | | February | 2,380 | (b) | $150,000 | | March | 255 | $31.01 | $150,000 | | April | 16 | $31.60 | $150,000 | | **Total** | **2,651** | | | - The February 2023 repurchases included **2.372 million** shares delivered under an Accelerated Share Repurchase (ASR) agreement. The final average price for the ASR was **$34.22** per share[182](index=182&type=chunk) [Exhibits](index=34&type=section&id=Item%206.%20Exhibits) The report includes various exhibits such as corporate governance documents, an executive severance agreement, and required CEO/CFO certifications - Filed exhibits include corporate governance documents, an executive severance agreement for Christine Rupp, and CEO/CFO certifications (Sections 302 and 906)[184](index=184&type=chunk)

Victoria's Secret & Co. (NYSE:VSCO) Q1 2023 Earnings Conference Call June 1, 2023 8:00 AM ET Company Participants Kevin Wynk - IR Martin Waters - CEO Timothy Johnson - CFO Conference Call Participants Simeon Siegel - BMO Capital Markets Alex Straton - Morgan Stanley Matthew Boss - JPMorgan Lorraine Hutchinson - Bank of America Irwin Boruchow - Wells Fargo Mauricio Serna - UBS Adrienne Yih - Barclays Jonna Kim - TD Cowen Marni Shapiro - Retail Tracker Operator Good morning. My name is Sue, and I will be your ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D. C. 20549 ______________________________________________________ FORM 10-K __________________________________________________________________________________ (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended January 28, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Comm ...

Victoria's Secret & Co. (NYSE:VSCO) Q4 2022 Results Conference Call March 3, 2023 8:00 AM ET Company Participants Kevin Wynk - IR Martin Waters - CEO Timothy Johnson - CFO Conference Call Participants Lorraine Hutchinson - Bank of America Alex Straton - Morgan Stanley Amanda Douglas - JPMorgan Simeon Siegel - BMO Capital Markets Omar Saad - Evercore Partners Adrienne Yih - Barclays Corey Tarlowe - Jefferies Jonna Kim - Cowen Operator Good morning. My name is Amanda, and I will be your conference operator to ...