Financial Data and Key Metrics Changes - The company reported first quarter net sales of $1,353 million and adjusted operating income of $32 million, both exceeding guidance ranges [33] - Adjusted net income per diluted share was $0.09, just shy of the upper end of guidance [33] - Total first quarter comparable sales contracted by 1% year over year, with a low single-digit decline in traffic across both stores and digital channels [34] Business Line Data and Key Metrics Changes - Both Victoria's Secret and Pink experienced slight year-over-year retail sales declines, while the beauty segment saw low single-digit growth [33] - Pink Apparel delivered consecutive quarters of positive comps and significant margin expansion, driven by improved product and customer engagement [11] - The beauty business achieved consecutive quarters of growth, driven by the success of the Bombshell fragrance [13] Market Data and Key Metrics Changes - International sales grew by 9% to nearly $200 million, with strong double-digit growth in the China market primarily driven by digital channels [34] - The North American business was essentially flat for the period, with digital channels slightly outpacing store performance [34] Company Strategy and Development Direction - The company is focused on its "Path to Potential" strategy, which includes initiatives like Recommit to PINK and Supercharge bras [9] - A new brand president model has been implemented, with key hires in leadership positions to drive growth and innovation [24][25] - The company aims to redefine brand identities and projections, particularly for Pink, to meet the next generation's preferences [29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating a complex market environment, despite challenges such as tariffs and a recent security incident [31][47] - The company is maintaining its forecasted net sales range of $6.2 billion to $6.3 billion for fiscal year 2025, reflecting a belief in its strategic positioning [28][29] - Management highlighted the importance of agility and responsiveness to market conditions, which contributed to exceeding expectations in Q1 [22] Other Important Information - The company experienced a security incident on May 24, which led to precautionary measures, but all critical systems were back online by May 29 [7][8] - Adjusted gross margin rate was 35.2%, a decline of 170 basis points compared to the previous year, primarily due to elevated air freight rates and tariff-related adjustments [35] Q&A Session Summary Question: Marketing strategy for the rest of the year - Management discussed a focus on targeted acquisition through a segmented media plan and an evolution in brand messaging, with a more youthful expression for Pink [49][51] Question: Price increases due to tariffs - Management indicated a strategic approach to pricing, optimizing promotions while being mindful of customer price sensitivity [53][54] Question: Progress in brand evolution - Management highlighted significant progress in Pink, particularly in apparel, and emphasized the need for a more energetic expression for Victoria's Secret [58] Question: Gross margin components - Management provided insights into the factors contributing to the gross margin decline, including inbound rates and tariff-related order adjustments [60][62] Question: Intimates market performance - Management noted share growth in sports bras and beauty, while intimates faced pressure, particularly in the panties category [74] Question: Inventory growth expectations - Management expects inventory growth to continue in the mid-single digits, influenced by the European distribution center ramp-up [93]

Financial Data and Key Metrics Changes - The company reported first quarter net sales of $1,353 million and adjusted operating income of $32 million, both exceeding guidance ranges [31] - Adjusted net income per diluted share was $0.09, slightly below the upper end of the guidance range [31] - Total first quarter comparable sales contracted by 1% compared to the prior year, with a low single-digit decline in traffic across both stores and digital channels [32] Business Line Data and Key Metrics Changes - Both Victoria's Secret and Pink experienced slight year-over-year retail sales declines, while the beauty segment saw low single-digit growth [31] - Pink Apparel delivered consecutive quarters of positive comps and significant margin expansion, driven by improved product and customer engagement [11] - The beauty business achieved consecutive quarters of growth, driven by the success of the Bombshell fragrance [13] Market Data and Key Metrics Changes - International sales grew by 9% to nearly $200 million, with strong double-digit growth in the China market primarily driven by digital channels [33][34] - The North American business was essentially flat for the period, with digital channels slightly outperforming stores [31][32] Company Strategy and Development Direction - The company is focused on its "Path to Potential" strategy, which includes initiatives like Recommit to PINK, Supercharge bras, and Fuel Growth in Lifestyle Categories [8] - The company plans to redefine brand identities and projections, particularly for Pink, to meet the next generation's preferences [28] - The leadership team has been strengthened with new appointments, including brand presidents for Victoria's Secret, Pink, and Beauty, as well as a new Chief Marketing Officer [22][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating a complex market environment, maintaining a forecasted net sales range of $6.2 billion to $6.3 billion for fiscal year 2025 [27][28] - The company anticipates continued uncertainty in the macro environment but remains pleased with the strong performance of its core business [28][44] - Management highlighted the importance of agility in responding to market challenges and opportunities, emphasizing a disciplined approach to expense management [30][44] Other Important Information - The company experienced a security incident in May, which led to temporary offline status for some internal systems and the e-commerce site, but operations have since returned to normal [6][7] - Adjusted gross margin rate was 35.2%, a decline of 170 basis points compared to the previous year, primarily due to elevated air freight rates and tariff-related adjustments [34] Q&A Session Summary Question: Marketing strategy for the rest of the year - Management indicated a focus on targeted acquisition through a segmented media plan and an evolution in creative content to push the brands further apart [47][49] Question: Price increases due to tariffs - Management stated that pricing strategies will be optimized, with a focus on promotional adjustments rather than blanket price increases across all categories [51][52] Question: Progress in brand evolution - Management highlighted significant progress in Pink, particularly in apparel, and noted ongoing efforts to energize the Victoria's Secret brand [55][57] Question: Gross margin components - Management explained that the primary headwinds for gross margin were related to inbound rates and tariff-related order adjustments, with expectations for some improvement in the back half of the year [58][59] Question: Intimates market performance - Management noted a shift in consumer behavior towards sports bras and comfort-focused products, with ongoing innovation in the pipeline [72][94]

About this content About Emily Jarvie Emily began her career as a political journalist for Australian Community Media in Hobart, Tasmania. After she relocated to Toronto, Canada, she reported on business, legal, and scientific developments in the emerging psychedelics sector before joining Proactive in 2022. She brings a strong journalism background with her work featured in newspapers, magazines, and digital publications across Australia, Europe, and North America, including The Examiner, The Advocate, ...

Victoria's Secret (VSCO) came out with quarterly earnings of $0.09 per share, in line with the Zacks Consensus Estimate. This compares to earnings of $0.12 per share a year ago. These figures are adjusted for non-recurring items.A quarter ago, it was expected that this retailer of lingerie, pajamas and beauty products would post earnings of $2.30 per share when it actually produced earnings of $2.60, delivering a surprise of 13.04%.Over the last four quarters, the company has surpassed consensus EPS estimat ...

First Quarter Earnings June 11, 2025 Forward Looking Statements Consolidated Balance Sheets | (Unaudited – In thousands) | May 3, 2025 | May 4, 2024 | | --- | --- | --- | | ASSETS | | | | Current Assets | | | | Cash and Cash Equivalents | $138,450 | $104,583 | | Accounts Receivable, Net | 153,035 | 151,698 | | Inventories | 1,042,921 | 987,033 | | Other | 120,286 | 149,466 | | Total Current Assets | 1,454,692 | 1,392,780 | | Property and Equipment, Net | 762,911 | 804,845 | | Operating Lease Assets | 1,534, ...

First quarter sales and operating income exceed expectations Reaffirms full year 2025 sales guidance REYNOLDSBURG, Ohio, June 11, 2025 (GLOBE NEWSWIRE) -- Victoria’s Secret & Co. (“VS&Co” or the “Company”) (NYSE: VSCO) today reported financial results for the first quarter ended May 3, 2025. “I am proud of the team and their commitment to adapting and remaining flexible in this challenging and fast-changing environment. We focused on proactively managing the business ensuring we are remaining nimble and pro ...

Victoria's Secret & Co. VSCO will release its first-quarter financial results before the opening bell on Wednesday, June 11. Analysts expect the Reynoldsburg, Ohio-based company to report quarterly earnings at 28 cents per share, down from 40 cents per share in the year-ago period. Victoria's Secret projects quarterly revenue of $1.41 billion, compared to $1.42 billion a year earlier, according to data from Benzinga Pro. On June 5, Barclays analyst Adrienne Yih maintained Victoria's Secret with an Overweigh ...

Core Viewpoint - Victoria's Secret & Co. is set to release its first quarter 2025 financial results on June 11, 2025, following a delay due to a security incident involving its IT systems [1] Group 1: Earnings Release Information - The earnings release will occur before market open on June 11, 2025, with a live webcast scheduled for 8:30 a.m. ET [1][2] - Financial information will be available on the company's investor relations website approximately one hour prior to the webcast [1] Group 2: Company Overview - Victoria's Secret & Co. is a specialty retailer offering a range of products including bras, lingerie, apparel, and fragrances, with a commitment to empowering over 30,000 associates across approximately 1,380 retail stores in nearly 70 countries [3]

Group 1 - Proactive provides fast, accessible, informative, and actionable business and finance news content to a global investment audience [2] - The news team covers medium and small-cap markets, as well as blue-chip companies, commodities, and broader investment stories [3] - Proactive has bureaus and studios in key finance and investing hubs including London, New York, Toronto, Vancouver, Sydney, and Perth [2][3] Group 2 - The company is committed to using technology to enhance workflows and has adopted various automation and software tools, including generative AI [4][5] - All content published by Proactive is edited and authored by humans, ensuring adherence to best practices in content production and search engine optimization [5]

Core Viewpoint - Victoria's Secret is postponing its quarterly earnings release due to a security breach that disrupted corporate operations and led to the temporary shutdown of its US shopping site for several days [1][6]. Group 1: Security Incident Details - The security incident was first detected on May 24, prompting the company to activate response protocols to contain unauthorized network access [2]. - Corporate systems and the retail website were temporarily shut down on May 26 as a precautionary measure, leading to frustration among shoppers due to the prolonged downtime [2][3]. - The website was restored late Thursday, but the incident is suspected to involve a ransomware cyberattack, reflecting a growing trend of such attacks on retailers [3]. Group 2: Financial Impact and Earnings - Victoria's Secret expects to report $1.35 billion in net sales and an adjusted operating income of $32 million for the first quarter of 2025, exceeding previous guidance [5]. - Analysts had anticipated sales of approximately $1.33 billion, indicating a positive outlook despite the security breach [5]. - The company clarified that the breach did not impact first-quarter results, as the period ended before the disruptions occurred [8][12]. Group 3: Ongoing Assessment and Industry Context - Victoria's Secret is continuing to assess the full scope of the incident, including potential expenses that may affect future finances [9]. - The incident is part of a broader trend, with several retailers, including Marks & Spencer and Adidas, reporting similar cyberattacks that disrupt operations and expose customer data [9][10].