Fri, Jun 7, 11:33 AM (92 days ago)
Victoria's Secret & Co. reported a challenging first quarter of 2024 with a net sales decline of 3% year-over-year to $1.359 billion and a comparable sales decrease of 5%. The company's North American store sales dropped by 7%, while direct channel sales fell by 3%. Despite these declines, international sales grew by 16%, driven by strong performance in China and wholesale arrangements. Operating income slightly decreased to $26 million from $28 million in the previous year, with an operating margin of 1.9%. The net loss attributable to the company was $4 million, compared to a net income of $1 million in the first quarter of 2023. The effective tax rate surged to 151.1% due to additional tax expenses from vesting share-based awards. Cash and cash equivalents decreased significantly to $105 million from $270 million at the beginning of the period, primarily due to operating and investing activities. The company maintained its long-term debt at approximately $1.12 billion and had $482 million available under its ABL Facility. The company continues to focus on strategic priorities and expects capital expenditures of around $230 million for the fiscal year, mainly for store upgrades and technology investments. Despite the current challenges, Victoria's Secret remains committed to optimizing performance and delivering long-term value.