Consumers are seen inside a shopping center in Bethesda, Maryland on February 17, 2022.
Mandel Ngan | AFP | Getty Pictures
Victoria’s Secret reported a quarterly revenue that topped Wall Road expectations on Tuesday, however warned that it may proceed to face provide chain and gross sales challenges for the rest of the yr.
The Ohio-based lingerie retailer famous that it confronted “provide chain headwinds” within the three-month interval ended April 30 whereas additionally lapping the gross sales bump it received within the year-ago interval from individuals spending their federal stimulus cash.
“If the primary quarter gross sales tendencies adjusted for stimulus had been to proceed for the steadiness of the yr, it may problem our potential to ship full yr working earnings in keeping with final yr,” the corporate stated in a press launch.
Gross sales within the quarter had been down 4.5% from a yr in the past, however in keeping with Wall Road estimates. The corporate famous that federal stimulus advantages lifted gross sales by about $75 million in the identical interval in 2021.
For the newest quarter, the corporate reported energy in its bras and wonder companies as its worldwide section recovered from heavy Covid restrictions.
The corporate’s shares rose round 7% in prolonged buying and selling.
Here is how Victoria’s Secret did in its fiscal first quarter in contrast with what Wall Road was anticipating, primarily based on Refinitiv estimates:
- Earnings per share: $1.11 adjusted vs 84 cents anticipated
- Income: $1.48 billion vs. $1.48 billion anticipated
For the three-month interval ended April 30, web earnings was $76.14 million, or 93 cents per share, in contrast with web earnings of $174 million, or $1.97 per share, a yr earlier.
Excluding one-time gadgets, Victoria’s Secret earned $1.11 per share, forward of the 84 cents that analysts anticipated.
Gross sales fell 4.5% to $1.48 billion from $1.55 billion a yr earlier, however had been in keeping with Wall Road forecasts.
Similar-store gross sales had been down 8% within the quarter from 2021. Adjusting for final yr’s stimulus profit, the corporate stated same-store gross sales had been down 3%.
Victoria’s Secret ended the quarter with stock ranges up 37% from the prior yr, which it stated was primarily attributable to longer transportation instances and better price of products stemming from inflation.
For its fiscal second quarter, Victoria’s Secret expects to earn between 95 cents per share to $1.25 a share, on an adjusted foundation. Analysts had been in search of $1.19 per share.
The corporate forecast gross sales to be down low-single digits to up low-single digits on a year-over-year foundation. Analysts had been in search of a 0.8% decline.
For the yr, Victoria’s Secret stated Tuesday it nonetheless expects whole gross sales to be flat to up low-single digits from 2021. Analysts had been projecting a year-over-year enhance of 1.7%, in accordance with Refinitiv knowledge.
“We now have proactively anticipated and are managing provide chain and inflationary pressures,” the corporate stated in ready remarks. “Nevertheless, we perceive there might be volatility in our outcomes.”
Victoria’s Secret shares have fallen about 26% yr to this point, as of Tuesday’s market shut.
