Victoria's Secret Q4 Earnings & Revenues Surpass Estimates

Core Viewpoint - Victoria's Secret & Co. (VSCO) reported strong fourth-quarter fiscal 2024 results, with earnings and revenues exceeding expectations and showing year-over-year growth [1][2]. Financial Performance - Adjusted earnings per share (EPS) for Q4 were $2.60, surpassing the Zacks Consensus Estimate of $2.30 by 13%, and increased 0.8% from $2.58 in the previous year [3]. - Quarterly revenues reached $2.1 billion, beating the consensus mark of $2.08 billion by 1.2%, and rose 1% year-over-year [3]. - Comparable sales increased by 5% year-over-year [3]. Sales Breakdown - North America channel net sales were $1.16 billion, up 0.5% year-over-year [4]. - Direct channel net sales rose 2.5% year-over-year to $752.2 million [4]. - International channel net sales decreased by 0.6% year-over-year to $193.2 million [4]. Margin and Costs - Gross profit declined 1.5% year-over-year to $813.4 million, with a gross margin of 38.6%, down from 39.7% in the prior year [5]. - Cost of sales increased by 2.8% year-over-year to $1.29 billion [5]. - General, administrative, and store operating expenses decreased by 3.8% year-over-year to $545.7 million [5]. Fiscal Year Highlights - Total revenues for fiscal 2024 were $6.22 billion, compared to $6.18 billion in fiscal 2023 [6]. - Operating income for fiscal 2024 was $309.6 million, up from $245.6 million in fiscal 2023 [6]. - Adjusted EPS for fiscal 2024 was $2.69, compared to $2.27 in the previous year [6]. Fiscal 2025 Outlook - For Q1 fiscal 2025, net sales are expected to range between $1.30 billion and $1.33 billion, with adjusted operating income forecasted between $10 million and $30 million [7]. - For fiscal 2025, net sales are projected to be between $6.2 billion and $6.3 billion, with adjusted operating income expected to range from $300 million to $350 million [8].