VICTORIA'S SECRET'S QUARTERLY REVENUES INCREASED BY 50% BUT DON'T REACH THE FORECAST
The American company Victoria's Secret, which owns the eponymous lingerie brand, in the second fiscal quarter, increased its revenue by 50% year on year, to $ 1.61 billion.
The company's revenue in the second quarter of the pre-pandemic 2019 increased by 10% and amounted to $ 1.79 billion. The company attributed the decrease in the indicator to the closure of 240 stores around the world.
Victoria's Secret net income for the second quarter was $ 151.1 million, or $ 1.71 per share. For the same period last year, the company received a loss of $ 199.5 million, or $ 2.26 per share.
Analysts surveyed by FactSet had an average forecast of $ 1.59 per share earnings on $ 1.69 billion in revenues.
The company expects earnings of $ 0.6-0.7 per share in the third fiscal quarter on revenue growth of 5-9% over the same period in 2020.
This is Victoria's Secret's first financial statement since the spin-off of the lingerie business under this brand from L Brands Inc. The latter was renamed and received the name of the Bath & Body Works perfume brand. All of the above indicators are comparable and characterize the state of Victoria's Secret lingerie business.
As a result of the spin-off, the shareholders received one Victoria's Secret for three L Brands shares. Victoria's Secret is listed on the New York Stock Exchange under the ticker VSCO.
The company announced its intention to rebrand and become more customer-oriented. In particular, Victoria's Secret plans to attract plus-size models and use matching mannequins to display their wares.
Victoria's Secret shares are down 7.9% during Thursday's preliminary trading.