MW Victoria's Secret says it won these 'major moments' as it bumps full-year sales forecast

By Bill Peters

Third-quarter momentum continued through Black Friday and Cyber Monday, CEO says

Victoria's Secret & Co. on Thursday raised its full-year sales outlook after making gains via the back-to-school season and a new sportswear launch, noting that improved performance in the third quarter had continued through Black Friday and Cyber Monday.

Still, shares of the bra, athleisure and fragrance maker $(VSCO)$ wavered after hours and were down more than 1%.

The company said it now expects sales growth of around 1% to 2% for its current fiscal year, compared to prior expectations for a roughly 1% drop.

For the third quarter, Victoria's Secret reported a net loss of $56 million, or 71 cents a share, compared with a net loss of $71 million, or 92 cents a share, in the same quarter last year.

Adjusted for restructuring charges and the acquisition of lingerie maker Adore Me, Victoria's Secret lost 50 cents a share. Revenue rose 7% year over year to $1.35 billion.

Analysts polled by FactSet expected the company to report an adjusted loss of 62 cents a share. They expected revenue of $1.29 billion.

"Our strength for the quarter was broad-based across all regions, all channels, all major merchandise categories and importantly all brands - Victoria's Secret, PINK and Adore Me - were up to last year," Chief Executive Hillary Super said in a statement.

"We won the major moments during the quarter, starting with PINK back to campus in August, followed by our VSX sport launch in September and finishing the quarter with the return of the VS Fashion Show in October," she continued.

Super added that third-quarter momentum had continued through the Black Friday and Cyber Monday retail-sales events in its current fourth quarter.

As with other companies that make and sell clothing, Victoria's Secret has faced a more reserved consumer dealing with higher costs for more pressing needs. The company also faces competition from celebrity brands.

Victoria's Secret's stock is up 62% so far this year.

-Bill Peters

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December 05, 2024 17:18 ET (22:18 GMT)

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