First Quarter 2024
Preliminary Results Guidance
Net Sales (3%) to (4%) (4%) to (6%)
Adjusted Operating Income$35 -$40 million $10 -$35 million
Adjusted Diluted Earnings Per Share$0.07 to$0.12 ($0.15 ) to$0.10
Chief Executive Officer
The Company reaffirms the fiscal year 2024 net sales and adjusted operating income guidance provided on
Adjusted operating income and adjusted diluted earnings per share are non-GAAP financial measures. At the conclusion of this press release, we have included more information regarding these non-GAAP financial measures, including a reconciliation of each non-GAAP financial measure to the most directly comparable financial measure reported in accordance with GAAP.
About
Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995
We caution that any forward-looking statements (as such term is defined in the
we may not realize all of the expected benefits of the spin-off from
general economic conditions, inflation, and changes in consumer confidence and consumer spending patterns;
market disruptions including pandemics or significant health hazards, severe weather conditions, natural disasters, terrorist activities, financial crises, political crises or other major events, or the prospect of these events;
our ability to successfully implement our strategic plan;
difficulties arising from turnover in company leadership or other key positions;
our ability to attract, develop and retain qualified associates and manage labor-related costs;
our dependence on traffic to our stores and the availability of suitable store locations on satisfactory terms;
our ability to successfully operate and expand internationally and related risks;
the operations and performance of our franchisees, licensees, wholesalers and joint venture partners;
our ability to successfully operate and grow our direct channel business;
our ability to protect our reputation and the image and value of our brands;
our ability to attract customers with marketing, advertising and promotional programs;
the highly competitive nature of the retail industry and the segments in which we operate;
consumer acceptance of our products and our ability to manage the life cycle of our brands, remain current with fashion trends, and develop and launch new merchandise, product lines and brands successfully;
our ability to realize the potential benefits and synergies sought with the acquisition of
our ability to incorporate artificial intelligence into our business operations successfully and ethically while effectively managing the associated risks;
our ability to source materials and produce, distribute and sell merchandise on a global basis, including risks related to:
political instability and geopolitical conflicts;
environmental hazards and natural disasters;
significant health hazards and pandemics;
delays or disruptions in shipping and transportation and related pricing impacts; and
disruption due to labor disputes;
our geographic concentration of production and distribution facilities in central
the ability of our vendors to manufacture and deliver products in a timely manner, meet quality standards and comply with applicable laws and regulations;
fluctuations in freight, product input and energy costs;
our and our third-party service providers' ability to implement and maintain information technology systems and to protect associated data and system availability;
our ability to maintain the security of customer, associate, third-party and company information;
stock price volatility;
shareholder activism matters;
our ability to maintain our credit rating;
our ability to comply with regulatory requirements; and
legal, tax, trade and other regulatory matters.
Except as may be required by law, we assume no obligation and do not intend to make publicly available any update or other revisions to any of the forward-looking statements contained in this press release to reflect circumstances existing after the date of this press release or to reflect the occurrence of future events, even if experience or future events make it clear that any expected results expressed or implied by those forward-looking statements will not be realized. Additional information regarding these and other factors can be found in 'Item 1A. Risk Factors' in our Annual Report on Form 10-K filed with the
For further information, please contact:
Investor Relations:
investorrelations@victoria.com
Media Relations:
communications@victoria.com
NON-GAAP FINANCIAL INFORMATION: See full release at:
https://www.victoriassecretandco.com/news-releases/news-release-details/victorias-secret-co-provides-first-quarter-2024-preliminary
In addition to our results provided in accordance with GAAP, provided below are non-GAAP financial measures that present operating income and net income per diluted share attributable to
First Quarter 2024
Reconciliation of Preliminary Results
Preliminary Operating Income - GAAP$21 -$26 million
Adore Me Acquisition-related Items (a) Approximately$8 million
Amortization of Intangible Assets (b) Approximately$6 million
Preliminary Adjusted Operating Income$35 -$40 million
Preliminary Net Income (Loss) Per Diluted Share Attributable toVictoria's Secret & Co. - GAAP ($0.10 ) to ($0.05 )
Adore Me Acquisition-related Items (a) Approximately$0.10
Amortization of Intangible Assets (b) Approximately$0.06
Preliminary Adjusted Net Income Per Diluted Share Attributable toVictoria's Secret & Co.$0.07 to$0.12
(a) In the first quarter of 2024, we recognized an approximately$8 million pre-tax charge (approximately$8 million net of tax), approximately$7 million included in general, administrative and store operating expense and approximately$1 million included in interest expense, related to the financial impact of purchase accounting items related to the acquisition of Adore Me.
(b) In the first quarter of 2024, we recognized approximately$6 million of amortization expense (approximately$5 million net of tax) included in general, administrative and store operating expense related to the acquisition of Adore Me.
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