Quarter in ups and downs for Victoria’s Secret. The American lingerie brand closed its fourth quarter ended January 29, with sales of $ 2.17 billion (approximately € 1.96 billion) and profits of $ 246.1 million. Diluted earnings per share stood at $ 2.70 for the period, beating the guidance which envisaged a range between 2.35 and 2.65. In the three months, sales increased by 3.6% compared to the same period in 2020, but fell below the 2.28 billion dollars (-12.1%) recorded in the fourth quarter of 2019 under L Brands, or before the spin-off of the label from its parent company.
Regarding the entire fiscal year, Victoria’s Secret has scored 6.8 billion dollars in turnover, but also in this case the gap with the pre-Covid levels remains (-9.6%). The profit for the year amounted to 646.3 million dollars, against the loss of 72.3 million in 2020.
For the current 2022, the company is prepared for challenges and criticalities, due to inflation and consequent price increases, as well as the international unrest linked to the war in Ukraine. Sales are expected to be stable on an annual basis, or to increase at single digit speeds, and operating income is also expected to be stable.
“We are fully aware that 2022 will present continuing challenges for retailers in this inflationary environment,” said CEO Martin Waters in an official statement. “However, we have a very resilient and specialized team and strategy, prepared to tackle these challenges head-on, focusing on the customer journey, prioritizing people, the planet and launching new initiatives for future growth.”
In the aftermath of financial results, Victoria’s Secret shares rise 6.66% on the New York Stock Exchange