Victoria's Secret & Co. has recently released its 10-Q report, providing a detailed look at the company's financial performance. The company operates as a specialty retailer of women's intimate apparel, beauty products, and various other clothing items under the Victoria's Secret, PINK, and Adore Me brands. The report outlines the company's strategic priorities, including accelerating its core, igniting growth, and transforming its foundation.
In the second quarter of 2024, Victoria's Secret reported an operating income of $62 million, marking a significant increase from the $26 million reported in the second quarter of 2023. This improvement in operating income was primarily driven by a decrease in costs of goods sold and general administrative expenses, despite a decrease in net sales.
The company's net sales decreased by 1% to $1.417 billion in the second quarter of 2024 compared to $1.427 billion in the same period in 2023. The North American store sales decreased by 2%, while the direct channel sales decreased by 1%. However, international sales saw an increase of 6% in the same period.
Victoria's Secret's gross profit for the second quarter of 2024 increased by $14 million to $501 million, with a gross profit rate of 35.4%, up from 34.1% in the second quarter of 2023. This improvement was attributed to reductions in costs of goods sold related to the company's supply chain initiative, partially offset by the decrease in net sales and an increase in promotional activity.
The 10-Q report also highlighted the financial impacts of the Adore Me acquisition, including the recognition of changes in the estimated fair value of contingent consideration and amortization of acquired intangible assets.
Today the company's shares have moved 1.1% to a price of $24.04. If you want to know more, read the company's complete 10-Q report here.
