$VSCO (+5,06%) | Victoria's Secret Q3 Earnings Highlights

🔹 Revenue: $1.35B (Est. $1.29B) 🟢; UP +7% YoY

🔹 Adj EPS: -$0.50 (Est. -$0.65) 🟢

Q4 Guidance:

🔹 Revenue Growth: +2% to +4% YoY

🔹 Adjusted EPS: $2.00-$2.30 (Est. $2.09) 🟢

🔹 Adjusted Operating Income: $240M-$270M

FY24 Guidance:

🔹 Revenue Growth: +1% to +2% YoY (Prev. -1%)

🔹 Adjusted Operating Income: $315M-$345M (Prev. $275M-$300M)

Other Q3 Metrics:

🔹 Comparable Sales Growth: +3% (Stores: +2%; Direct: +3%)

🔹 North America Stores Revenue: $738.1M (Est. $714.1M) 🟢

🔹 Direct Revenue: $411.0M (Est. $398.5M) 🟢

🔹 International Revenue: $198.3M (Est. $180.5M) 🟢

🔹 Adjusted Operating Loss: $28M (Est. -$43.1M) 🟢; Improved from -$60M YoY

Key Business Highlights:

🔸 Strong Sales Performance: Achieved best quarterly sales growth since 2021, driven by mid-single digit growth in North America and 20%+ international growth.

🔸 Momentum Across Brands: Growth across Victoria’s Secret, PINK, and Adore Me.

🔸 Key Campaigns: Success from PINK Back-to-Campus, VSX Sport launch, and return of the VS Fashion Show.

🔸 Holiday Readiness: Positive early response to holiday merchandise assortments driving traffic and conversion.

🔸 Margin Expansion: Improved gross and operating margins due to disciplined inventory management and cost controls.

CEO Commentary:

🔸 "Our Q3 results reflect strong sales and disciplined inventory management, translating into margin improvements. Our clear, elevated brand marketing and emotional product offerings are resonating with customers, setting the stage for a strong holiday season." – Hillary Super, CEO