VICTORIA’S Secret & Co reported net sales guidance for the full year that fell short of analysts’ expectations, underscoring the retailer’s struggle to grow as it works to gain relevance with customers.
The company expects net sales of US$6 billion this year, short of the average analyst estimate and weaker than last year. Victoria’s Secret has been working to acquire and retain customers through initiatives like a rebranded fashion show and the expansion of swim and apparel categories, but the efforts have yet to pay off.
The shares plunged as much as 26 per cent in late trading in New York. Through Wednesday’s (Mar 6) close, the stock had fallen 3.5 per cent since the start of the year.
In the quarter ended Feb 3, which included the crucial holiday shopping season, comparable sales at Victoria’s Secret fell 6 per cent. Profitability, meanwhile, beat expectations thanks in part to better inventory management. BLOOMBERG
