Victoria’s Secret reports "challenging" first full year results as publicly traded company

Lingerie businesses Victoria’s Secret has reported net income for the fiscal year 2022 decreased to £397 million ($478 million), compared to £723 million ($870 million) in 2021, due to a "challenging economic environment" for customers.

Victoria’s Secret & Co. reported 2022 financial results for the fourth quarter and fiscal year ended 28 January 2023, revealing a decrease in sales during both periods.

2022 fourth quarter results compared to 2021 are as follows:

• Net income of £144 million ($173 million), compared to £204 million ($246 million) in 2021.
• Operating income reached £202 million ($243 million), compared to £277 million ($333 million) in 2021.
• Adjusted net income was £167 million ($203 million), compared to £233 million ($280 million) in 2021.
• Net sales stand at £1.679 billion ($2.021 billion), down by 7% compared to £1.807 billion ($2.175 billion) in 2021.

2022 full year results compared to 2021 are as follows:

• Net income sits at £289 million ($348 million), compared to £537 million ($646 million) previous.
• Operating income was £397 million ($478 million), compared to £723 million ($870 million) in 2021.
• Adjusted net income was £346 million ($416 million), compared to £537 million ($646 million) in 2021.
• Net sales stand at £5.272 billion ($6.344 billion), down by 6% compared to 2021.

Martin Waters, Chief Executive Officer, commented: "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.

"As we look into the new year, we recognize the environment will likely remain challenging for the foreseeable future. However, we firmly believe our brand repositioning efforts are tracking well and our plans for growth outlined at our Investor Day in October have us on the right path."