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Victoria’s Secret (VSCO) Q1 2022 earnings beat


A group of shoppers is seen at a Bethesda shopping center on February 17, 2022.

Mandel Ngan | AFP | Getty Images

Victoria’s SecretAlthough it reported a quarter-end profit surpassing Wall Street expectations, the company warned that it may face sales and supply chain challenges throughout the year.

According to the Ohio-based retailer of lingerie, it experienced “supply chain headwinds” in the period ending April 30, while still enjoying the gains it saw in sales from federal stimulus money.

The company stated in a press release that “if the first quarter sales trends adjusted to stimulus continued for the remainder of the year it could hinder our ability to deliver full-year operating income in line last year.”

Although sales in this quarter fell 4.5% compared to a year prior, they were in line Wall Street estimates. According to the company, federal stimulus payments increased sales by approximately $75 million during that same period in 2021.

The company saw strength in bras and beauty business sales for the last quarter as the international segment rebounded from Covid restrictions.

Extended trading saw the company’s share price rise by around 7%

This is how it works Victoria’s SecretDid in its fiscal first quarterComparable to what Wall Street had expected, according to Refinitiv estimates

  • Earnings per share: $1.11 adjusted vs 84 cents expected
  • Revenue:1.48 Billion vs. expected $1.48 Billion

Net income for the three months ended April 30 was $76.14million, which is 93cs per share. This compares with $174 million net income, or $1.97 a share, one year ago.

Victoria’s Secret made $1.11 per Share, excluding one-time items. This was higher than the analyst’s expectation of 84 Cents.

However, sales declined 4.5% to $1.48 Billion from $1.55Billion one year prior. They were however in line the Wall Street forecasts.

Comparatively to 2021, same-store sales fell 8% during the third quarter. The company reported that same-store sales fell 3% after accounting for the stimulus benefits last year.

Victoria’s Secret’s quarter ended with 37% more inventory than the year before. It said this was due in part to longer shipping times and higher prices for goods, which is caused by inflation.

Victoria’s Secret is expecting to make between 95 cents and $1.25 per diluted share in its fiscal quarter. Analysts had expected to see $1.19 per share.

According to the company, sales would fall low-single figures to rise low-single numbers year over year. Analysts expected a decline of 0.8%.

Victoria’s Secret announced Tuesday that for the year total sales will remain stable to rise low single figures starting in 2021. According to data from Refinitiv, analysts were expecting a 1.7% increase in year-over-year sales.

In prepared remarks, the company claimed that they had proactively planned for and managed inflationary pressures. We are aware that there may be some volatility in our results.

Victoria’s Secret shares fell 26% in the last year, according to Tuesday’s closing of the market.