Victoria’s Secret makes headway despite larger-than-anticipated loss

Despite suffering a larger-than-anticipated quarterly loss, Victoria’s Secret & Co. maintains the coping strategies they have been deploying, including increased investment in marketing and technology, are beginning to yield positive results. 

This third-quarter loss, reaching 86 cents per share after certain items have been excluded, surpassed the average analyst estimate of an 80-cent loss. 

Yet, the company observed its November sales were the “strongest monthly performance in nearly two years,” reinforcing their belief that their strategies are effective. 

Over the years, Victoria’s Secret has been striving to transform its brand image in response to criticism over its provocative marketing approach that eventually became detached from consumer preferences. They highlighted their expansion into the swimwear and sportswear sectors during an investor conference in October. 

The company also introduced the globally-known fashion event named the World Tour to attract more consumers to their stores. The declining sales, along with the increased investments, were held responsible for the recent loss by the company. 

Martin Waters, the Chief Executive Officer, emphasized the company's determination in his statement. He expressed how their teams remain focused on what they can control and are tirelessly working on various growth strategies to reinvigorate the company's momentum. 

The company shares have seen volatile trading, moving between losses and gains. So far this year, the shares have dropped 34% through to the close of Wednesday, in contrast to the 17% increase observed in the Russell 3000 Index. 

A recent report highlighted that PVH Corp., the parent company of Calvin Klein and another intimate apparel manufacturer, failed to meet the estimates for their third-quarter earnings. The report also shed light on expectations for a deficiency in the company’s performance during the current period. In response, the shares dropped 4% at 5:01 p.m. during extended trading in New York.