Victoria's Secret reports loss as sales drop in Q3

Victoria’s Secret & Co. remains "confident" in its strategic growth plan, despite a 4% decrease in net sales for the third quarter.

The company has reported net sales of £1 billion ($1.265 billion) for the period ending 28 October 2023, compared to £1.034 billion ($1.318 billion) the previous year.

Net loss totalled £56 million ($71 million), against a net income of £18.9 million ($24 million) in the third quarter of 2022.

Looking ahead, Victoria’s Secret & Co. expects net sales to increase between 2% to 4% in the fourth quarter. However, the company anticipates annual net sales to decrease in the range of 2% to 3% compared to last year.

Martin Waters, CEO of Victoria’s Secret, said: “We delivered third quarter results within our guidance range, and we are encouraged by the improving sales trend as we transition into the all-important holiday season.

“With the long-term health of the business in mind, we are energised by the positive signs in the business and remain committed to our strategic priorities.

"We believe our evolving strategies will position the business to deliver the potential of our Victoria’s Secret and PINK brands, and I believe we have the right leadership team in place at the right time for our business to be successful.

"We remain confident in our brand repositioning efforts and are committed to delivering our long-term financial targets and returning value to shareholders.”

Last year, Victoria’s Secret & Co. announced its strategic growth plan to help "strengthen the core, ignite growth, and transform the foundation of the business".

At the time, the company said it hoped to grow market share across its key categories of bras, intimates, and beauty.

It also shared plans to evolve its brand positioning to be more inclusive and attract a more loyal customer base, with more emphasis on storytelling in stores and on its digital platforms.