Victoria’s Secret Q2 Report: Loss as Comparable Sales Drop 11%

Victoria’s Secret & Co. posted its Q2 results, revealing net sales of $1.427 billion, a 6% decline, driven by a significant drop in comparable sales.

For the quarter ending July 29, total comparable sales fell by 11% compared to Q2 2022. As a result, the lingerie giant reported a net loss of $1 million, or $0.02 per diluted share, contrasting with a net income of $70 million, or $0.83 per diluted share, in the same period last year.

CEO Martin Waters commented, «We delivered second-quarter sales, adjusted operating income, and adjusted diluted earnings per share within our guidance range, despite challenges in our core intimates categories.»

He noted that the North American market faced particular sales challenges during Q2, impacting both Victoria’s Secret and Pink businesses. However, the international business achieved sales growth exceeding 25% compared to the previous year, and the recently acquired Adore Me brand also contributed to sales growth during the quarter.

Despite difficulties, the company’s teams focused on managing selling margins, cost control, and optimizing inventory levels, which were reduced by a low-double-digit percentage compared to the previous year.

Looking ahead, Victoria’s Secret expects third-quarter net sales to decrease in the low- to mid-single-digit range, compared to last year’s third-quarter net sales of $1.318 billion.