Victoria’s Secret Q4 net sales decrease 7 percent

Victoria’s Secret & Co. reported net income of 173 million dollars or 2.10 dollars per diluted share for the fourth quarter of 2022 compared to 246 million dollars or 2.70 dollars per diluted share for the fourth quarter of 2021.

Fourth quarter operating income was 243 million dollars compared to 333 million dollars in the same quarter of 2021. Adjusted net income was 203 million dollars or 2.47 dollars per diluted share and adjusted operating income was 280 million dollars.

The company reported net sales of 2.021 billion dollars for the quarter, a decrease of 7 percent, while comparable sales decreased 6 percent.

Commenting on the trading update, the company’s chief executive officer Martin Waters said: “In the holiday quarter, our teams controlled what they could control despite a challenging economic environment for our customer, delivered fourth quarter adjusted operating income and adjusted earnings per diluted share above our most recent guidance, and exited the year with Victoria’s Secret and Pink inventory levels down double digits on an adjusted basis — prudently positioned to begin 2023.”

Highlights of Victoria Secret’s full year results

For the full year, the company reported net income of 348 million dollars or 4.14 dollars per diluted share compared to 646 million dollars or 7.18 dollars per diluted share for the full year 2021. Operating income for the year was 478 million dollars compared to 870 million dollars last year.

The company’s adjusted net income was 416 million dollars or 4.95 dollars per diluted share, and adjusted operating income was 566 million dollars.

The company reported net sales of 6.344 billion dollars for the full year, a decrease of 6 percent, while comparable sales decreased 8 percent compared to last year.

The company is forecasting full year 2023 net sales to increase in the mid-single digit range compared to last year’s net sales of 6.344 billion dollars. For the first quarter 2023 net sales are expected to decrease in the mid-single digit range, adjusted operating income is expected to be in the range of 55 million dollars to 85 million dollars and adjusted net income in the range of 30 cents to 60 cents per diluted share.