Victoria's Secret & Co. (NYSE:VSCO) shares fell almost 5% after the lingerie retailer swung into the red during the first quarter.
It posted a net loss of $4 million or $0.05 per share compared to a profit of $1 million or $0.01 per share for the same period in 2023.
Adjusted earnings per share (EPS) of $0.12 were down from $0.28 in the year-ago quarter but ahead of the $0.11 expected.
Sales decreased 3.4% to $1.36 billion, in line with expectations.
For the second quarter, the company expects its net sales to decrease in the low-single-digit range from the year-ago quarter’s sales of $1.48 billion.
Wall Street analysts expect an almost 3% decline to $1.38 billion.
It expects adjusted EPS in the range of $0.05 to $0.20, above the $0.04 expected by analysts.
“With some caution around the broader retail environment in North America, we are planning the business appropriately conservative in the near-term, but are encouraged by the start to May and the second quarter,” Victoria’s Secret CEO Martin Waters commented.
Shares of Victoria’s Secret traded down 4.8% at $21.51 late morning on Thursday.