Victoria’s Secret & Co. Achieves Steady Growth In Fourth Quarter 2024 Amid Market Challenges

$VSCO

Victoria’s Secret & Co. (NYSE:VSCO) , renowned for its iconic lingerie, apparel and beauty products, reported a slight increase in net sales and a notable improvement in operating income, reflecting its resilience and adaptability in a fluctuating retail landscape. For the fourth quarter ending February 1, 2025, Victoria’s Secret & Co. reported net sales of $2.106 billion, a 1% increase from $2.082 billion in the previous year’s comparable period.

This growth was bolstered by a 5% rise in total comparable sales, showcasing consumer demand for the brand’s offerings. The company’s net income for the quarter stood at $193 million, or $2.33 per diluted share, up from $181 million, or $2.29 per diluted share, in the fourth quarter of 2023. The company’s CEO, Hillary Super, expressed satisfaction with the holiday season performance, highlighting successful sales across the Victoria’s Secret and PINK brands, as well as the beauty segment. Super emphasized the brand’s effective storytelling and emotional connection with customers, which have been central to its strategy.

Its full-year results also reflected steady performance, with net sales totaling $6.230 billion for the 52-week fiscal year 2024, a slight increase from $6.182 billion in the previous 53-week fiscal period. The total comparable sales for the fiscal year remained flat, indicating stable consumer engagement with the brand’s products. The reported net income for the fiscal year was $165 million, or $2.05 per diluted share, showing a significant improvement from $109 million, or $1.39 per diluted share, in the previous year.

In addition to these results, the company made adjustments for non-recurring items, including a change in accounting estimate related to gift card redemptions which positively impacted the financials. Excluding these impacts, the adjusted operating income for the fourth quarter was $299 million and for the full year, it was $373 million. Looking ahead to the first quarter of 2025, Victoria’s Secret & Co. anticipates net sales to range between $1.30 billion and $1.33 billion. The adjusted operating income is expected to be between $10 million and $30 million, considering potential headwinds from unseasonal weather and shifting consumer confidence.

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