Victoria’s Secret & Co. (VS&Co) estimates adjusted operating loss for third quarter in the range of 45 million dollars to 65 million dollars compared to previously communicated guidance range of a loss of 45 million dollars to 75 million dollars, and adjusted net loss in the range of 70 cents to 90 cents per share compared to previous estimate of a loss of 70 cents to 1 dollar per share.
The company said in a statement that this adjusted operating loss and adjusted loss per share guidance is based on a net sales decline in the range of 3 percent to 5 percent in the quarter compared to previous expectations of a net sales decline in the low to mid-single digit range.
The company is also reaffirming previous guidance for full year 2023 which forecasts net sales to decrease in the low-single digit range compared to last year and the adjusted operating income rate to be in the range of 5 percent to 6 percent of net sales.
Commenting on third quarter results to date, the company’s chief executive officer Martin Waters said: “Our sales growth internationally has been ahead of plan and our sales trends in North America continue to improve each month as planned. Our early October results have positioned us for our best month of the third quarter. This is consistent with our expectations and encouraging as we finalise our plans for the all-important holiday season and fourth quarter selling.”
The company added that the leadership team is in discussion to build on the momentum and expand its global footprint, including multi-year plans to increase sales and profitability in existing international markets along with planned entry into new markets around the world.
Additionally, with Adore Me now in the VS&Co family, the company will initiate measures to drive growth opportunities for the Adore Me brand, which doubles as a tech powerhouse, providing tech-enabled synergies and growth drivers for the Victoria’s Secret and Pink brands.
“At our Investor Day last year, we declared our goal to be the world’s leading fashion retailer of intimate apparel and we defined our three strategic priorities designed to support our goal: strengthen our core, ignite growth and transform the foundation. Our strategic initiatives to ignite growth are tracking well ahead of our plan as evidenced by significant growth in our international business and the acquisition of the Adore Me brand, which is also expanding and presenting synergy opportunities for VS&Co,” added Waters.