Victoria's Secret earnings beat, sales grow 7 percent
Victoria’s Secret & Co. reported net income of 75.2 million dollars or diluted earnings per share of 81 cents in the third quarter of 2021, compared to previously communicated guidance of 60 cents to 70 cents per diluted share.
This result compares to net income of 143.4 million dollars or earnings per share of 1.62 dollars and adjusted net income of 72.6 million dollars or adjusted earnings per share of 82 cents for the period ended October 31, 2020.
Commenting on the third quarter results, Victoria’s Secret CEO Martin Waters said: “I am very pleased with our solid third quarter performance which reflects growth in all core categories. Our work to transform our brand, deepen our customer connections and improve our operational fundamentals is gaining positive traction.”
Victoria’s Secret Q3 net sales increase 7 percent
Third quarter 2021 operating income was 107.9 million dollars compared to operating income of 127.4 million dollars and adjusted operating income of 97.5 million dollars in last year’s third quarter. Third quarter 2021 operating income growth of 11 percent over adjusted operating income in last year’s third quarter was driven by total sales growth of 7 percent and gross margin dollar growth of 14 percent.
The company reported net sales of 1.441 billion dollars for the third quarter of 2021, an increase of 7 percent compared to last year’s third quarter. Sales decreased 9 percent compared to sales of 1.577 billion dollars in the third quarter of 2019 and reflect the net closure of approximately 260 company-operated stores since the third quarter of 2019. Total comparable sales for the third quarter of 2021 increased 4 percent compared to the third quarter of 2019.
The company is forecasting fourth quarter 2021 sales to be in the range of flat to up 3 percent versus last year’s fourth quarter sales of 2.100 billion dollars and diluted earnings per share to be in the range of 2.35 dollars to 2.65 dollars.