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Q2 sales and earnings drop at Victoria's Secret

By Prachi Singh

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Business

Image: Victoria's Secret store on 5th Avenue, Victoria's Secret & Co.

Victoria’s Secret Co reported net income of 70 million dollars or 83 cents per diluted share for the second quarter of 2022 compared to 151 million dollars or 1.71 dollars per share for the second quarter of 2021.

The company reported net sales of 1.521 billion dollars, a decrease of 6 percent compared to the prior year second quarter. Total comparable sales for the quarter were down 8 percent.

Commenting on the second quarter performance, the company’s chief executive officer Martin Waters said: “Even in a very difficult macroeconomic environment, thanks to our team’s relentless focus on execution, we were able to deliver second quarter adjusted operating income and adjusted earnings per diluted share results within our guidance range.

“We expect customers will continue to be challenged by inflationary and other financial pressures for the balance of 2022.”

Second quarter reported operating income was 98 million dollars, while adjusted operating income was 127 million dollars, which was in the range of the company’s previously communicated guidance of 125 million dollars to 155 million dollars and compared to 203 million dollars in the second quarter of 2021.

Full-year guidance

The company is forecasting full year 2022 net sales to decrease in the mid to high single digit range, while adjusted operating income is expected to be in the range of 525 million dollars to 575 million dollars or approximately 8 percent to 9 percent of sales.

Third quarter net sales are expected to decrease in the high single digit range compared to last year’s third quarter net sales of 1.441 billion dollars.

Operating income is expected to be in the range of 10 million dollars to 40 million dollars and earnings are estimated to be in the range of 00 to 25 cents per diluted share compared to earnings of 81 cents per share last year.

Victoria's Secret