Victoria’s Secret & (VSCO) - 2025 Q4 - Annual Results

Financial Performance - The Company reported net sales of $2.106 billion for the fourth quarter of 2024, a 1$2.082 billion in the fourth quarter of 2023[5]. - Comparable sales for the fourth quarter of 2024 increased by 5%, while full year comparable sales were flat[11][24]. - Net income for the fourth quarter of 2024 was $193 million, or$2.33 per diluted share, compared to $181 million, or$2.29 per diluted share in the fourth quarter of 2023[6]. - Adjusted net income for the fourth quarter of 2024 was $216 million, or$2.60 per diluted share, compared to $204 million, or$2.58 per diluted share in the fourth quarter of 2023[7]. - Net income attributable to Victoria's Secret & Co. for the thirteen weeks ended February 1, 2025, was $193,412, compared to$181,087 in the same period of 2024, reflecting a 6.8% increase[27]. - Adjusted net income attributable to Victoria's Secret & Co. for the fourth quarter of 2024 was $216,428, compared to$203,580 in 2023, representing a 6.4% increase[32]. Sales Forecast - The Company forecasts first quarter 2025 net sales to be in the range of $1.30 billion to$1.33 billion, down from $1.359 billion in the first quarter of 2024[15]. - For fiscal year 2025, the Company projects net sales between$6.2 billion and $6.3 billion, compared to$6.204 billion in fiscal year 2024[16]. Operating Income - Adjusted operating income for the fourth quarter of 2024 was $299 million, compared to$283 million in the fourth quarter of 2023[7]. - The Company expects adjusted operating income for fiscal year 2025 to be in the range of $300 million to$350 million[16]. - The company reported an operating income of $309,601 for the fiscal year ended February 1, 2025, up from$245,566 in 2024, a significant increase of 25.9%[29]. - Operating income for the thirteen weeks ended February 1, 2025, increased to $267,686, up 3.1$258,366 in 2024[27]. Store Operations - Total stores increased from 1,370 on February 3, 2024, to 1,387 on February 1, 2025, with a net addition of 17 stores[25]. - The company operated 782 stores in the U.S. as of February 1, 2025, down from 808 stores on February 3, 2024, a decrease of 3.2%[25]. International Sales - The Company experienced a 10.7% increase in international sales for the full year 2024 compared to the previous year[23]. Accounting Adjustments - The Company recorded a cumulative adjustment of approximately $26 million in the fourth quarter of 2024 due to a change in accounting estimate related to outstanding gift cards[8]. - The company recognized pre-tax expenses of$21.6 million related to impairment and other charges for certain equity method investments in the fourth quarter of 2024[34]. Share Information - The weighted average shares outstanding increased to 83,148 for the thirteen weeks ended February 1, 2025, from 78,909 in the prior year[27]. Gross Profit - Gross profit for the thirteen weeks ended February 1, 2025, was $813,433, down 1.4$825,841 in the prior year[27].