Victoria’s Secret (NYSE:VSCO) on Wednesday posted a results beat for the second quarter and provided an updated forecast for the full year and current quarter.
Shares of the lingerie retailer were up 3% in aftermarket New York trading. Stock closed +0.61% at $24.87 before the report.
The company now expects 2024 net sales to be down about 1%, compared to prior guidance of down low-single digits. Adjusted operating income is now forecast in the $275M to $300M range, compared to prior guidance of $250M to $275M.
For Q3, the company expects net sales to increase by low single digits, adjusted operating loss in the range of $40M to $60M, and adjusted net loss per share in the range of $0.60 to $0.80. The Seeking Alpha consensus estimate for Q3 adjusted EPS is -$0.68.
“While we are optimistic about the positive signs we’re seeing in our business, we recognize the consumer environment remains challenging and our customer is pressured economically. We remain focused on what we can control, which is leveraging our market position in intimates and delivering on multiple initiatives to drive growth in our business over the longer term,” the company said.
In Q2, operating income was $62M compared to $26M a year ago.
Net income for the three months ended June 30 was $32M, compared to a net loss of $1M for the same period last year.
On an adjusted per-share basis, the company earned 40 cents, beating the average analyst expectations by 2 cents.
Revenue fell 1% to $1.42B but beat the consensus estimate of $1.41B.
