Victoria’s Secret & Co. announced that net sales grew while comparable sales declined in its fiscal fourth quarter ended Feb. 3, 2024. The lingerie retailer also forecasted weak sales for fiscal 2024, leading to a record 28% drop in share price following the news. That’s the steepest drop since the retailer went public in 2021, Bloomberg reported.

 “As we look into the new year, we recognize the broader intimates market in North America has been down for four consecutive quarters and we are planning the business appropriately conservative in the near-term,” CEO Martin Waters said in a March 6 press release.

Victoria’s Secret is No. 52 in the Digital Commerce 360 Top 1000, a ranking of North America’s leading retailers by online sales. Digital Commerce 360 categorizes Victoria’s Secret as an Apparel & Accessories retailer.

Victoria’s Secret Q4 and 2023 results

Net sales increased 3% to $2.08 billion in the quarter, from $2.02 billion in Q4 2022. That was in line with Victoria’s Secret’s projection of 2% to 4% sales growth, the retailer said.

Meanwhile, comparable sales declined 6% over the same period. Net income increased to $182.5 million from $172.1 million in the year-ago period. 

“Sales trends during the fourth quarter were volatile by week, but we were encouraged by the improving quarterly sales trend in the fourth quarter in North America,” Waters said in the press release.

Victoria’s Secret did not share specific information about online sales in Q4. However, the digital channel performed “slightly better” than stores during the period, Waters said. The retailer also said that sales for the Adore Me online line, which it acquired in January 2023, grew year over year.

The international side of the business was the only real bright spot, and sales increased 24% year over year for the quarter. Much of that growth took place in China, Victoria’s Secret said without sharing specific figures.

For the full 2023 fiscal year, net sales declined about 3% to $6.18 billion from $6.34 billion in 2022. Comparable sales declined 9%. Net income declined more drastically, down about 66% to $109.2 million.

Holiday and semi-annual sale results

The holidays were successful for Victoria’s Secret, Waters said.

“We were particularly pleased with our early holiday sales in November and during the peak days and weekends leading up to Christmas, both in stores and through our digital channels, led by strong response to our giftable merchandise assortment, improving customer experiences and marketing messages,” he added.

The retailer successfully managed strategic promotions around key shopping days in December, it said. 

Victoria’s Secret also typically holds its semi-annual sales in June and December. The lingerie retailer had lower inventory going into the 2023 sales than it did in the previous year, which led to better margins, Waters said.

2024 projections

Victoria’s Secret projected $6 billion in total sales for fiscal 2024, a “low-single-digit decline” from 2023. It also expects a mid-single-digit decline in Q1 2024 net sales.

The conservative forecast is a result of the challenging economic environment and a competitive market for consumers’ limited disposable income, the retailer said. 

“The single biggest challenge in the model right now is the North America sales trend,” chief financial officer Tim Johnson said.

“This forecast reflects our expectation that the domestic intimates market will remain challenged and that our core customer will be cautious in this environment,” Waters added.

In 2024, Victoria’s Secret plans to spend about the same amount on marketing as it did in 2023, but with a focus on more personalization and maintaining relevance in the hopes of attracting a younger consumer, Waters said.

Victoria’s Secret earnings

For its fiscal fourth quarter ended Feb. 3, 2024, Victoria’s Secret reported:

• Net sales increased 3% to $2.08 billion.
• Comparable sales declined 6%.
• Net income increased to $182.5 million from $172.1 million in the year-ago period. 

For the full year ended Feb. 3, 2024, Victoria’s Secret reported:

• Net sales declined 3% to $6.18 billion.
• Comparable sales declined 9%.

Percentage changes may not align exactly with dollar figures due to rounding. Check back for more earnings reports. 

Do you rank in our database?

Submit your data and we’ll see where you fit in our next ranking update.

Sign up

Stay on top of the latest developments in the ecommerce industry. Sign up for a complimentary subscription to Digital Commerce 360 Retail News. Follow us on LinkedIn, Twitter and Facebook. Be the first to know when Digital Commerce 360 publishes news content.