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Victoria’s Secret & (VSCO) - 2024 Q4 - Annual Results
VSCOVictoria’s Secret & (VSCO)2024-03-05 16:00

Financial Performance - The company reported fourth quarter net income of 181million,or181 million, or 2.29 per diluted share, compared to 173million,or173 million, or 2.10 per diluted share in the same quarter last year[5]. - Fourth quarter adjusted net income was 204million,or204 million, or 2.58 per diluted share, at the high-end of the guidance range[6]. - Net sales for the fourth quarter were 2.082billion,a32.082 billion, a 3% increase from 2.021 billion in the prior year[7]. - Gross profit for the fourth quarter of 2023 was 825,841,upfrom825,841, up from 744,268 in Q4 2022[27]. - Operating income for the full year 2023 was 245,566,asignificantdecreasefrom245,566, a significant decrease from 477,633 in 2022[29]. - Adjusted net income per diluted share for Q4 2023 was 2.58,comparedto2.58, compared to 2.47 in Q4 2022[32]. Sales and Growth - The international business saw a 24% increase in sales compared to last year, contributing to the company's growth strategy[3]. - The company plans to implement multiple initiatives to drive growth, including enhancements to customer experience and product launches[4]. - For fiscal year 2024, the company forecasts net sales to be about 6.0billion,reflectingalow−single−digitdeclinecomparedtothepreviousyear[15].−Thefirstquarter2024netsalesareexpectedtodecreasemid−singledigitscomparedtolastyear′s6.0 billion, reflecting a low-single-digit decline compared to the previous year[15]. - The first quarter 2024 net sales are expected to decrease mid-single digits compared to last year's 1.407 billion[16]. - Comparable sales decreased by 6% in Q4 2023 and 9% for the full year compared to 2022[24]. Cash Flow and Debt Management - The company generated 589millioninoperatingcashflowduringthefourthquarterandreduceddebtbyover589 million in operating cash flow during the fourth quarter and reduced debt by over 150 million year-over-year[1][13]. - The company announced a new 250millionsharerepurchaseauthorizationtoenhanceshareholdervalue[1][14].StoreOperations−Thecompanyoperated831storesasofFebruary3,2024,downfrom837storesatthebeginningoftheyear[25].−Totalstoresincreasedby85inQ42023,despite73closures,resultinginatotalof1,370stores[25].−Thecompanyreportedadecreaseinweightedaveragesharesoutstandingfrom82,299in2022to78,909in2023[27].MarginsandCostManagement−Thefourthquartergrossmarginrateexceededexpectations,drivenbydisciplinedinventorymanagementandcostreductions[3].−Thecompanyrecognized250 million share repurchase authorization to enhance shareholder value[1][14]. Store Operations - The company operated 831 stores as of February 3, 2024, down from 837 stores at the beginning of the year[25]. - Total stores increased by 85 in Q4 2023, despite 73 closures, resulting in a total of 1,370 stores[25]. - The company reported a decrease in weighted average shares outstanding from 82,299 in 2022 to 78,909 in 2023[27]. Margins and Cost Management - The fourth quarter gross margin rate exceeded expectations, driven by disciplined inventory management and cost reductions[3]. - The company recognized 18,775 in acquisition-related items for Adore Me in Q4 2023[32].