REYNOLDSBURG, Ohio, Feb. 15, 2024 (GLOBE NEWSWIRE) -- In conjunction with the Victoria’s Secret & Co. (NYSE:VSCO) fourth quarter 2023 earnings release, which will cross the wire after market close on Wednesday, March 6th, you are invited to listen to a live webcast of the conference call on Thursday, March 7th at 8:00 a.m. ET with Victoria’s Secret & Co. executives. What:Victoria’s Secret & Co. Fourth Quarter 2023 Earnings Conference Call WebcastWhen:8:00 a.m. ET on Thursday, March 7th, 2024Where: https://w ...

REYNOLDSBURG, Ohio, Feb. 15, 2024 (GLOBE NEWSWIRE) -- In conjunction with the Victoria's Secret & Co. (NYSE:VSCO) fourth quarter 2023 earnings release, which will cross the wire after market close on Wednesday, March 6th, you are invited to listen to a live webcast of the conference call on Thursday, March 7th at 8:00 a.m. ET with Victoria's Secret & Co. executives. What:Victoria's Secret & Co. Fourth Quarter 2023 Earnings Conference Call WebcastWhen:8:00 a.m. ET on Thursday, March 7th, 2024Where: https://w ...

Victoria's Secret & Co. (VSCO) recently announced a multi-year strategic partnership with Google Cloud to enhance online shopping experiences globally and improve operational efficiency. The decision to collaborate was driven by Google Cloud's strong proficiency in AI security practices and its adaptability in integration.Within this collaboration, the company aims to harness Google Cloud’s AI and generative AI technologies to develop a novel conversational assistant that provides personalized product recom ...

About this content About Stephen Gunnion Stephen Gunnion is a senior financial journalist and broadcaster at Proactive Investors. He has more than 25 years of experience in television, radio and print media, anchoring on a number of television channels including South Africa's Business Day TV, CNBC Africa and the South African Broadcasting Corporation, where he was the economics editor. He has also worked for Daily Maverick, Bloomberg, the Business Day newspaper and Investors' Chronicle. Read more About ...

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 ...

Financial Data and Key Metrics Changes - The company reported a 4% decline in overall sales for the third quarter compared to the previous year, which was at the midpoint of their guidance [51][54] - Adjusted operating income for the fourth quarter is forecasted to be between $245 million and $285 million, with full-year sales expected to decrease by 2% to 3% compared to last year [54] Business Line Data and Key Metrics Changes - The beauty business continues to be the best-performing category, with significant improvements noted in panties, bras, and sleepwear [53] - The PINK brand's intimates and sleepwear outperformed apparel, with challenges in PINK apparel negatively impacting third quarter sales by approximately 3 to 4 percentage points [53][54] Market Data and Key Metrics Changes - The intimate market in North America experienced a mid-single-digit decline, while the company maintained its market share [52][53] - Digital sales now account for 35% of total system sales, up from 30% the previous year, indicating growth in the North American business [17] Company Strategy and Development Direction - The company has three strategic priorities: accelerate the core, ignite growth, and transform the foundation, with a focus on the North American business [7] - The loyalty program has over 22 million members, driving approximately 75% of weekly sales, which is expected to enhance customer experiences and marketing personalization [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the holiday season, noting that November sales were the best in nearly two years, driven by strong customer response to holiday merchandise [48][49] - The company is cautious about inventory levels and is focused on continuous improvement throughout 2024, particularly in the PINK brand [32][122] Other Important Information - The company has launched over 50 new digital enhancements to improve customer experience and has expanded its store of the future fleet to 71 stores, with plans to reach 85 by year-end [8] - The international business is experiencing strong momentum, particularly in China, contributing to overall growth [5][49] Q&A Session Summary Question: What is the revenue impact of the loyalty program? - Management noted that the loyalty program is foundational, with 75% of revenue coming from its members, and expects significant benefits to materialize in 2024 [10][11] Question: How is the beauty margin compared to other categories? - The beauty business has a favorable margin rate relative to the company average and is expected to be a leading category during the holiday season [15][16] Question: What is the current state of the North America intimates category? - Management indicated that the category has seen unusual declines but remains optimistic about new product introductions driving future growth [39][40] Question: What are the expectations for December sales? - Management expects a year-over-year decline in December sales due to historical patterns following strong Black Friday and Cyber Monday sales [121][122] Question: How is the company addressing the sports bra market? - The company acknowledged a significant decline in market share for sports bras and is committed to rebuilding its position through innovation and leveraging existing relationships with manufacturers [65][66]

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].

Financial Data and Key Metrics Changes - In Q2 2023, adjusted operating income was $49 million, and adjusted earnings per diluted share was $0.24, both near the midpoint of guidance range [7] - Overall sales declined 6% compared to last year, which was near the low end of guidance range [7] - Adjusted operating income rates are expected to be in the range of 5% to 6% for the full year 2023 [50] Business Line Data and Key Metrics Changes - The beauty business continues to be the best-performing category, followed by bras, sleepwear, and panties [21] - Adore Me sales contributed approximately 4 percentage points to total sales growth for Victoria's Secret & Co. in the quarter [20] - Sales trends for the intimates market in North America decreased in the mid-single digits compared to last year [8] Market Data and Key Metrics Changes - International business experienced growth of 26% in Q2 2023, with total international system-wide sales up in the low teens [9] - The company entered four new countries and opened nine new digital sites in the past 12 months [9] - Digital share increased slightly while store share decreased slightly on a rolling 12-month basis [8] Company Strategy and Development Direction - The company is focused on three pillars: strengthening the core, igniting growth, and transforming the foundation [18] - Plans include opening 25 to 35 net new stores in the fall season and leveraging Adore Me's expertise to enhance customer experience [9][28] - The Victoria's Secret World Tour is expected to be the largest marketing investment in over five years [51] Management's Comments on Operating Environment and Future Outlook - Management noted that the macro environment continues to pressure the customer base and core intimates categories [19] - There are early signs of recovery in sales trends, particularly in August, which were better than previous months [49] - Management remains optimistic about improving sales trends in the back half of the year, driven by new initiatives and marketing efforts [30][49] Other Important Information - The company launched a new multi-tender loyalty program, gaining over 16 million members in three months, accounting for over 70% of weekly sales [24][82] - The Featherweight Max sports bra and the Seamless Air Sports Bra have shown strong early performance [64] - The company is seeing positive trends in digital capabilities and customer experience enhancements [78] Q&A Session All Questions and Answers Question: Can you elaborate on the three pillars and initiatives to strengthen the core? - Management expressed confidence in the brand's repositioning journey and emphasized the importance of innovation in bras and panties [32][35] Question: What factors caused the accelerating August trend? - Management noted improvements in product offerings and marketing initiatives, particularly in beauty and new merchandise [63] Question: What are the expectations for promotionality in the fall season? - Management expects promotionality to remain flat year-over-year but is optimistic about the impact of full-price initiatives [67] Question: How is the international strategy performing? - Management highlighted strong performance in international markets, particularly in China, and noted the success of partnerships [71] Question: What is the growth driver behind the beauty segment? - The strength in beauty performance is attributed to successful product launches and its natural adjacency to lingerie [105] Question: How is the PINK brand performing and what are the expectations for back-to-school? - Management indicated early positive signs for new PINK merchandise and strong performance in August, which is seen as a proxy for back-to-school [120]

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]