Victoria’s Secret & Co. is projecting a more robust year ahead than Wall Street was expecting, with the lingerie retailer expecting revenue to climb to the highest since it split from L Brands Inc. and became an independent company.
Net sales should rise to at least $6.85 billion in the current fiscal year, the company said Thursday. That exceeds the $6.77 billion average estimate among analysts surveyed by Bloomberg and would be the highest in seven years.
Victoria’s Secret is bouncing back from a prolonged slump during which competition intensified and the company struggled to modernise its image. Chief executive officer Hillary Super is reviving the business with renewed focus on bras as well as the Pink business, which caters to younger consumers. The company is trying to grow its beauty business while working to develop products more quickly and reduce its reliance on markdowns.
Victoria’s Secret Shares Soar
The retailer’s stock has more than quadrupled from last year’s low point in early April. The shares have advanced 11 percent this year, outperforming the Russell 2000 Index.
Victoria’s Secret came under investor pressure midway through last year to make changes to its board and strategy. The company has now posted three straight quarters of revenue growth, with sales for the latest period that ended in January also beating expectations.
L Brands became Bath & Body Works Inc. in 2021, following the spinoff of Victoria’s Secret.
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