Victoria’s Secret sees Q3 operating income and earnings at high end of outlook

For the third quarter, Victoria’s Secret & Co. estimates operating income to be towards the high end of its previous guidance range of 10 million dollars to 40 million, and earnings to be towards the high end of 0 to 25 cents per diluted share.

The company said in a release that the updated operating income and earnings per diluted share guidance is based on a net sales decline in the high single digit range compared to last year.

Commenting on the update ahead of its investor day, the company’s chief executive officer Martin Waters said: “We have been looking forward to tomorrow’s event and the opportunity to present our strategy and outlook for the future to the investor community. Our market position atop the domestic intimates category is a key strength and growth opportunity for our business.”

As a part of the company’s long-term strategic growth plan Victoria’s Secret intends growing market share in its key categories of bras, intimates and beauty.

The company also aims to build its global footprint through international partners, while adding new brands to the portfolio, organically or through investments.

“We are positioned to deliver sustainable long-term sales growth and mid-teens operating margin rates over time, and we expect the power of our model will generate significant cash flow to invest in growth and also return value to shareholders through our capital allocation strategy,” Waters added.