Victoria’s Secret & Co. Presents Strategic Growth Plan Designed To Strengthen The Core, Ignite Growth And Transform The Foundation; Earnings To Be Towards The High End Of Its Previously Communicated Guidance Range Of $10M-$40M, Adj. EPS Of $0.00-$0.25

Third Quarter 2022 Financial Guidance Update

Based on quarter to date trends and expectations for the balance of the quarter, the Company now estimates third quarter 2022 operating income to be towards the high end of its previously communicated guidance range of $10 million to $40 million, and earnings are estimated to be towards the high end of the previously communicated guidance range of $0.00 to $0.25 per diluted share.   The updated operating income and earnings per diluted share guidance is based on a net sales decline in the high single digit range compared to last year, which is consistent with the Company’s previously communicated guidance.

Victoria’s Secret & Co. (“Victoria’s Secret” or the “Company”) (NYSE:VSCO) will be hosting a meeting for investors and analysts tomorrow to share the Company’s strategic vision for the future while also reflecting on the successes of its first year as an independent, publicly-traded company.
 

Chief Executive Officer Martin Waters commented, “We have been looking forward to tomorrow’s event and the opportunity to present our strategy and outlook for the future to the investor community. Led by our two category-defining brands and a global business positioned to increase market share, our goal is clear – to be the world’s leading fashion retailer of intimate apparel. Our market position atop the domestic intimates category is a key strength and growth opportunity for our business. We are energized by our customer’s response to our brand transformation and remain committed to becoming the Victoria’s Secret our customers and associates deserve.”  

Martin continued, “We have created a solid financial platform during the last 15 months as a public company. With our new operating structure in place, we now have even greater agility and an aligned focus on our customer and our strategic priorities. We are positioned to deliver sustainable long-term sales growth and mid-teens operating margin rates over time, and we expect the power of our model will generate significant cash flow to invest in growth and also return value to shareholders through our capital allocation strategy.”

At its Investor Day, members of the senior leadership team will discuss the Company’s long-term strategic growth plan which is guided by the following three principles:

• Strengthen the core – growing market share in our key categories of bras, intimates and beauty, while evolving our brand positioning to be more inclusive and attracting a broader more loyal customer base with more compelling story telling in stores and on our digital platforms;

   

• Ignite growth – building our global footprint primarily through our international partners, while adding new brands to our portfolio, organically or through investments, with a focus on categories and customer groups where we are underrepresented to enhance our brand position; and

   

• Transform the foundation – building a modern, high performing, agile, empowered, enabled organization to deliver efficiencies and to invest in our people and culture.