Victoria’s Secret continues to fly low. The American intimate fashion company has published the first results after announcing that it would organize its iconic fashion show again in 2024. The company has closed the first quarter of the year (ended on May 4) with a negative net result and a drop in sales.
The company’s turnover in the first quarter of the year contracted 3.4%, to 1,359 million dollars. During the first trimester The company has entered into losses, with a negative net result of 3.6 million dollarscompared to the $725 million it earned in the same period of 2023.
In its local market, where it operates through its own stores, the company’s turnover contracted by 7.2%, up to 729 million dollars. Sales of the retail business in the rest of the world also decreased in the first quarter, reaching a turnover of 448.8 million dollars, 3.4% less. The company’s international business, which it does not operate directly, has recorded growth of 15.6%, with sales worth $181.5 million.
Victoria’s Secret has grown 15.6% abroad, but continues to decline in its local market
Despite the slowdown in US business, Victoria’s Secret CEO Martin Waters explained that Sales of Victoria’s Secret and Pink brands in North America improved throughout the quarter both in physical stores and in online commerce. “The retail environment in North America has been challenging, but we have managed to increase our gross margin compared to the previous year thanks to better inventory management,” explained Waters.
During the last year, The company has opened a total of 21 new stores, but closed another 13. The Victoria’s Secret commercial network currently has 1,378 stores, concentrated in the United States and Canada. In the rest of the world, the company is present through stores operated by a partner.
Looking ahead to 2024, Victoria’s Secret plans to close the year with sales of $6 billiona single-digit contraction compared to 2023. Last year, the intimate company had a turnover of 6,181 million dollars, which already represented a contraction compared to 2022.
These are the company’s first results after announcing in May that it will once again organize the iconic parade that elevated its brand so much. The company made the decision to cancel it in 2019, after continued accusations of misogyny and workplace harassment. The event will be held again in 2024, under the new direction of Martha Pease, who advises the CEO and has led this repositioning strategy.
