MW Victoria's Secret taps retail veteran as new CFO, but stock sells off

By Ciara Linnane

Bra and athleisure company tightens guidance ranges but fails to lift top-end

Victoria's Secret & Co.'s stock slid 6% premarket Wednesday, after the bra, athleisure and fragrance maker moved to bring in a retail veteran as new finance chief and tightened guidance ranges for the current quarter.

The loss-making company $(VSCO)$, which is restructuring, said it has appointed Scott Sekella as chief financial officer, succeeding Tim Johnson, who is retiring in June.

Sekella was most recently CFO of crafts retailer Joann and has done stints at Under Armour Inc. $(UA)$ and Crocs Inc. $(CROX)$.

Chief Executive Hillary Super said Sekella was a transformational leader "with extensive and diverse retail experience delivering results, driving operational efficiencies, and executing growth strategies."

The Reynoldsburg, Ohio-based company tightened its guidance and now expects adjusted per-share earnings for its fiscal fourth quarter through Feb. 1 to range from $2.20 to $2.30, compared with prior guidance of $2.00 to $2.30.

It expects sales excluding the extra week last year to rise 3% to 4%, compared with prior guidance of 2% to 4%.

The company said momentum in North America continued from the fiscal third quarter through November and December at stores and digital channels, while the international business also met growth expectations.

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.

Newness of product helped drive sales at both Victoria's Secret and PINK brands, said Super.

"We exited the holiday and our January semi-annual sale in a good inventory position and ready for Valentine's Day and first quarter selling," she added.

The company will report fiscal fourth-quarter earnings in March.

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

The stock has gained 44% in the last 12 months, but is down 8.5% in the year to date, while the S&P 500 SPX has gained 3%.

-Ciara Linnane

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January 29, 2025 08:39 ET (13:39 GMT)

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