Victoria's Secret & Co. (NYSE:VSCO) reported a 5% decrease in first-quarter revenues, citing a volatile macro environment and increased promotional activity as the reasons behind the decline.
The lingerie giant also experienced a double-digit drop in comparable sales, down 11% for the quarter.
Despite managing to remain profitable, with earnings of $1 million or $0.01 per diluted share, compared to $81 million or $0.93 per diluted share in the prior-year period, Victoria's Secret expressed disappointment in the challenging business conditions.
CEO Martin Waters acknowledged the decline in sales, particularly in core categories, and attributed it to the significant overall decline in the North American intimates market. However, the company highlighted the success of its international business, particularly in China, and expressed satisfaction with the performance of the recently acquired Adore Me.
In light of the lackluster results, Victoria's Secret has adjusted its full-year guidance for fiscal 2023, expecting net sales to be in the range of flat to down low-single digits compared to the previous year's $6.344 billion in net sales.
Contact Angela at angela@proactiveinvestors.com
Follow her on Twitter @AHarmantas