Victoria's Secret & Co. Reports First Quarter 2024 Results

Core Insights - Victoria's Secret & Co. reported first quarter results that were at the high-end of previously announced preliminary results, with adjusted operating income reaching $40 million and net sales of $1.359 billion, a decrease of 3% year-over-year [1][5][4] - The company provided guidance for the second quarter, forecasting a low-single digit decrease in net sales compared to the previous year, and reaffirmed its full-year 2024 outlook with expected net sales of approximately $6.0 billion [6][7] Financial Performance - The company experienced a net loss of $4 million, or $0.05 per diluted share, for the first quarter of 2024, compared to a net income of $1 million, or $0.01 per diluted share, in the same quarter of 2023 [3] - Adjusted net income for the first quarter of 2024 was $9 million, or $0.12 per diluted share, down from $22 million, or $0.28 per diluted share, in the first quarter of 2023 [4][24] Sales and Market Trends - Total comparable sales for the first quarter of 2024 decreased by 5%, with North American store sales down 7.2% and direct sales down 3.4% [5][17] - The international business saw net sales growth in the mid-teens, indicating a positive trend outside North America [2] Operational Insights - The company noted improvements in customer traffic in stores and strong digital sales performance, which outpaced store sales due to investments in customer experience [2] - The SG&A rate was favorable, reflecting increased efficiency within the operating model [2] Proxy Advisory Recommendations - Leading independent proxy advisory firms recommended shareholders vote in favor of all director candidates, the approval of increased capacity under the stock plan, and the say-on-pay proposal at the upcoming annual meeting [9]