Proactive Investors - Victoria's Secret & Co. (NYSE:VSCO) has reported fourth quarter revenue and earnings that topped expectations in its first full year as a public company.
However, the lingerie giant signalled caution, sending its shares 2.5% lower to $36.81 by early Friday afternoon in New York.
The company reported net sales of $2.02 billion for 4Q 2022, a decrease of 7% compared to net sales of $2.18 billion in the prior year's fourth quarter.
Adjusted net income came in at $203 million, or $2.47 per diluted share, compared to net income of $246 million, or $2.70 per diluted share, a year earlier.
Analysts polled by Refinitiv were forecasting per-share earnings of $2.34 on revenue of $2.02 billion.
“In the holiday quarter, our teams controlled what they could control despite a challenging economic environment for our customer, delivered fourth-quarter adjusted operating income and adjusted earnings per diluted share above our most recent guidance, and exited the year with Victoria’s Secret and PINK inventory levels down double digits on an adjusted basis — prudently positioned to begin 2023,” the company’s CEO Martin Waters said in a statement.
Waters said the operating environment is likely to remain challenging for the foreseeable future.
The company has forecast a decrease in 1Q 2023 net sales in the mid-single digit range compared to last year’s 1Q sales of $1.48 billion. Adjusted 1Q net income is estimated to be in the range of $0.30 to $0.60 per diluted share.
For the full-year 2023, it expects net sales to increase in the mid-single digit range with operating income holding steady.