Victoria’s Secret reports Q2 sales decline, raises full-year 2024 outlook

Victoria’s Secret & Co. reported net sales of $1.417 billion for the second quarter of 2024, a decrease of 1%.

The Reynoldsburg, Ohio-based company said total comparable sales during the quarter ending August 3, decreased 3%, yet the overall results were at the higher end of the company’s forecasted range. Due to the sales performance, the lingerie giant registered a net income of $32 million, or $0.40 per diluted share for the second quarter of 2024. 

“Our financial results for the second quarter came in at the high end of expectations and we delivered year-over-year quarterly operating income growth for the first time since 2021. We were encouraged by the continued sequential improvement in quarterly sales results in North America for the fourth consecutive quarter, as sales trends improved in both our stores and digital channels,” said interim chief executive officer and chief financial and administrative officer Timothy (TJ) Johnson. 

The success was driven by the launch of new collections like the Victoria’s Secret Dream bra, the Pink Friday back-to-campus event, and the steady growth of VS Sport. These factors contributed to improved product acceptance, disciplined inventory management, and a corresponding growth in gross margin dollars and rate expansion. Additionally, the company reported sales growth in the high-single digits for its International business and Adore Me brand.

Looking ahead, the company is forecasting third quarter net sales to increase low-single digits compared to last year’s third quarter net sales of $1.265 billion. 

Victoria’s Secret also raised its full-year outlook. The company now expects fiscal year 2024 net sales to be down approximately 1%, compared to prior guidance of down low-single digits. Adjusted operating income is expected to range between $275 million and $300 million, up from previous guidance of $250 million to $275 million.