Victoria's Secret & Co. Reports Third Quarter 2024 Financial Results
Victoria's Secret & Co. (NYSE: VSCO) announced its financial results for the third quarter, which concluded on November 2, 2024. The company showed a stronger than expected performance, driven by significant sales increases.
Key Financial Metrics
| Financial Metric | Q3 2024 | Q3 2023 | Year-over-Year Change | Consensus Estimate |
|---|---|---|---|---|
| Total Revenue | $1.347 billion | $1.265 billion | +7% | Exceeded guidance |
| Net Loss | $56 million | $71 million | Improved | N/A |
| Earnings Per Share (EPS) | ($0.71) | ($0.92) | Improved | N/A |
| Adjusted Net Loss | $39 million (or $0.50 per share) | $66 million (or $0.86 per share) | Improved | Better than guidance of ($0.60) to ($0.80) |
| Operating Loss | $47 million | $67 million | Improved | N/A |
| Adjusted Operating Loss | $28 million | $60 million | Improved | Better than guidance of $40 to $60 million |
Interpretation: Victoria's Secret & Co. has demonstrated a strong financial performance for the quarter, exceeding both previous guidance and last year's results. The improved operating performance and adjusted net loss suggest a positive trajectory in the company's financial health.
Revenue Performance by Segment
| Segment | Q3 2024 Revenue | Quarter-over-Quarter Performance |
|---|---|---|
| North America | Mid-single digit growth | Exceeded previous expectations |
| International | 20+% growth | Exceeded previous expectations |
Interpretation: The company achieved broad-based growth across all segments. Notably, the International segment saw more than 20% growth, indicating successful market penetration and strong consumer demand outside North America.
Operational Highlights
- Sales Increase: Q3 sales increased by 7%, marking the fifth consecutive quarter of improvement.
- Product Launches: Successful launches including PINK back-to-campus, VSX sport in September, and the return of the VS Fashion Show in October.
- Sales Channels: Strong performance across all channels and regions.
- Brand Performance: All major brands—Victoria's Secret, PINK, and Adore Me—showed growth compared to last year.
Comments from Company Officers
CEO Hillary Super stated, 'I am very encouraged by the strength of our third quarter business and early customer response to our holiday merchandise. Our disciplined inventory management and elevated brand marketing have resulted in strong margins and sales growth.'
Forward Guidance
The company raised its full-year outlook, forecasting net sales to rise by approximately 1% to 2% year-over-year, an improvement from the earlier guidance of a potential decline. For Q4 2024, the company anticipates a 2% to 4% increase in net sales compared to Q4 2023.
In summary, Victoria's Secret & Co.'s Q3 2024 results reflect robust performance and strategic operational success, contributing to improved financial metrics and positive future outlooks.
For more in-depth analysis and insights, stay tuned with our platform to stay ahead of the market.
