Victoria's Secret & Co. reported its financial results for the second quarter ended August 3, 2024. The company's net income for the second quarter of 2024 was $32 million, or $0.40 per diluted share, compared to a net loss of $1 million, or $0.02 per diluted share for the same period in 2023. Operating income for the second quarter of 2024 was $62 million, a significant increase from $26 million in the second quarter of 2023.
The company's net sales for the second quarter of 2024 were $1.417 billion, representing a decrease of 1% compared to the same period in 2023. However, the total comparable sales for the second quarter of 2024 decreased by 3%.
Victoria's Secret & Co. has raised its full-year outlook for fiscal year 2024, now forecasting a net sales decrease of approximately 1%, compared to its prior guidance of a decrease in low-single digits. The adjusted operating income for fiscal year 2024 is now expected to be in the range of $275 million to $300 million, up from the previous guidance of $250 million to $275 million.
Looking ahead to the third quarter of 2024, the company forecasts net sales to increase by low-single digits compared to the third quarter of 2023, which had net sales of $1.265 billion. The adjusted operating loss for the third quarter of 2024 is estimated to be in the range of $40 million to $60 million, with an adjusted net loss per share in the range of $0.60 to $0.80.
Victoria's Secret & Co. noted that the company experienced sequential improvement in quarterly sales results in North America for the fourth consecutive quarter, with sales trends improving in both stores and digital channels. The company also reported a sales growth in the high-single digits for both its international business and Adore Me.
The interim CEO and CFO, Timothy (TJ) Johnson, expressed optimism about the positive signs in the business, while acknowledging the challenging consumer environment and economic pressures on customers. He highlighted the encouraging early customer feedback on fall assortments for both the Victoria's Secret and Pink brands and expressed excitement about planned events for the balance of the third quarter, including a major VSX Sport launch and the return of the Victoria's Secret Fashion Show.
Victoria's Secret & Co. will conduct its second-quarter earnings call on Thursday, August 29, 2024. The company's stock trades on the NYSE under the ticker symbol VSCO and operates in nearly 70 countries with a global footprint of more than 1,370 retail stores and approximately 30,000 associates. The market has reacted to these announcements by moving the company's shares 0.6% to a price of $24.88. If you want to know more, read the company's complete 8-K report here.
