Victoria's Secret delays earnings release after ‘security incident' shut down website

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].