Shares of Victoria’s Secret & Co. (VSCO) rose after hours on Wednesday as the company announced that it could potentially incur a smaller loss than previously projected in the third quarter. Despite weaker demand for intimate wear, Victoria’s Secret aims to boost growth through its strategic plans.
Revised Expectations
Victoria’s Secret now expects an adjusted net loss per share of 70 cents to 90 cents for the third quarter, compared to the prior estimate of 70 cents to $1 a share. The positive adjustment contributed to a 3.2% increase in after-hours trading.
Additionally, the company predicts a sales decline between 3% and 5% in the third quarter, an improvement from the earlier forecast that predicted a drop in the “low- to mid-single digit range.” Victoria’s Secret reported enhanced sales trends in North America during this period.
Full-Year Outlook
Despite ongoing challenges, Victoria’s Secret maintains its full-year outlook, projecting a sales decline in the “low-single digit range.” This forecast was made ahead of an investor meeting scheduled for Thursday.
Strategies for Growth
Victoria’s Secret aims to reignite growth following weaker clothing demand caused by increased prices for basic goods. The company has made significant progress in expanding its international business and acquiring the Adore Me brand, an online intimates brand purchased earlier this year.
Chief Executive Martin Waters acknowledges the difficulties faced and emphasizes the strategic priority of strengthening the core business in North America. He acknowledges that the macroeconomic environment has become more uncertain, the domestic intimates market has softened, and the merchandise assortment has lacked differentiation.
Overall, Victoria’s Secret remains optimistic about its future performance given its efforts to revitalize and differentiate its business.
