Victoria’s Secret & Co. Presents Strategic Growth Plan Designed to Strengthen the Core, Ignite Growth and Transform the Foundation
October 12 2022 - 4:05PM
Victoria’s Secret & Co. (“Victoria’s Secret” or the “Company”)
(NYSE: VSCO) will be hosting a meeting for investors and analysts
tomorrow to share the Company’s strategic vision for the future
while also reflecting on the successes of its first year as an
independent, publicly-traded company.
Chief Executive Officer Martin Waters commented,
“We have been looking forward to tomorrow’s event and the
opportunity to present our strategy and outlook for the future to
the investor community. Led by our two category-defining brands and
a global business positioned to increase market share, our goal is
clear – to be the world’s leading fashion retailer of intimate
apparel. Our market position atop the domestic intimates category
is a key strength and growth opportunity for our business. We are
energized by our customer’s response to our brand transformation
and remain committed to becoming the Victoria’s Secret our
customers and associates deserve.”
Martin continued, “We have created a solid
financial platform during the last 15 months as a public company.
With our new operating structure in place, we now have even greater
agility and an aligned focus on our customer and our strategic
priorities. We are positioned to deliver sustainable long-term
sales growth and mid-teens operating margin rates over time, and we
expect the power of our model will generate significant cash flow
to invest in growth and also return value to shareholders through
our capital allocation strategy.”
At its Investor Day, members of the senior
leadership team will discuss the Company’s long-term strategic
growth plan which is guided by the following three principles:
- Strengthen the
core – growing market share in our key categories of bras,
intimates and beauty, while evolving our brand positioning to be
more inclusive and attracting a broader more loyal customer base
with more compelling story telling in stores and on our digital
platforms;
- Ignite growth –
building our global footprint primarily through our international
partners, while adding new brands to our portfolio, organically or
through investments, with a focus on categories and customer groups
where we are underrepresented to enhance our brand position;
and
- Transform the
foundation – building a modern, high performing, agile,
empowered, enabled organization to deliver efficiencies and to
invest in our people and culture.
Third Quarter 2022 Financial Guidance
Update Based on quarter to date trends and expectations
for the balance of the quarter, the Company now estimates third
quarter 2022 operating income to be towards the high end of its
previously communicated guidance range of $10 million to $40
million, and earnings are estimated to be towards the high end of
the previously communicated guidance range of $0.00 to $0.25 per
diluted share. The updated operating income and
earnings per diluted share guidance is based on a net sales decline
in the high single digit range compared to last year, which is
consistent with the Company’s previously communicated guidance.
Investor Day Event DetailsThe
event will be hosted tomorrow at The Drake Oakbrook in Chicago,
Illinois and will be broadcast live via webcast on the Investors
section of the Company’s website beginning at 10:00
a.m. Eastern / 9:00 a.m. Central. Speaking to investors
tomorrow will be Martin Waters, Chief Executive Officer –
VS&Co; Timothy Johnson, Chief Financial and Administrative
Officer; Amy Hauk, Chief Executive Officer – Victoria’s Secret
& PINK; Greg Unis, Chief Growth Officer; and Christine Rupp,
Chief Customer Officer. A replay of the webcast and presentation
materials will be available on the Investors section of the
Company’s website following the event.
About Victoria’s
Secret & Co.Victoria’s Secret & Co. (NYSE: VSCO)
is a Fortune 500 specialty retailer of modern, fashion-inspired
collections including signature bras, panties, lingerie, casual
sleepwear, athleisure and swim, as well as award-winning
prestige fragrances and body care. VS&Co is
comprised of market leading brands, Victoria’s Secret and
Victoria’s Secret PINK, that share a common purpose of inspiring
and uplifting our customers in every stage of their lives. We are
committed to empowering our more than 30,000 associates across a
global footprint of nearly 1,350 retail stores in approximately 70
countries. We provide our customers with products and experiences
that make them feel good inside and out while driving positive
change through the power of our products, platform and
advocacy.
Safe Harbor Statement Under the Private
Securities Litigation Reform Act of 1995
We caution that any forward-looking statements
(as such term is defined in the U.S. Private Securities Litigation
Reform Act of 1995) contained in this press release or made by us,
our management, or our spokespeople involve risks and uncertainties
and are subject to change based on various factors, many of which
are beyond our control. Accordingly, our future performance and
financial results may differ materially from those expressed or
implied in any such forward-looking statements. Forward-looking
statements include, without limitation, statements regarding our
future operating results, the implementation and impact of our
strategic plans, and our ability to meet environmental, social, and
governance goals. Words such as “estimate,” “commit,” “target,”
“goal,” “project,” “plan,” “believe,” “seek,” “strive,” “expect,”
“anticipate,” “intend,” “potential” and any similar expressions may
identify forward-looking statements. Risks associated with the
following factors, among others, could affect our financial
performance and cause actual results to differ materially from
those expressed or implied in any forward-looking statements:
- the spin-off from Bath & Body
Works, Inc. (f/k/a L Brands, Inc.) may not be tax-free for U.S.
federal income tax purposes;
- a loss of synergies from separating
the businesses that could negatively impact our balance sheet,
profit margins or earnings;
- we may not realize all of the
expected benefits of the spin-off;
- general economic conditions,
inflation, consumer confidence, consumer spending patterns and
market disruptions, including pandemics or significant health
hazards, severe weather conditions, natural disasters, terrorist
activities, financial crises, political crises or other major
events, or the prospect of these events;
- the novel coronavirus (COVID-19)
global pandemic has had and may continue to have an adverse effect
on our business and results of operations;
- the seasonality of our
business;
- difficulties arising from turnover
in company leadership or other key positions;
- our ability to attract, develop and
retain qualified associates and manage labor-related costs;
- our dependence on mall traffic and
the availability of suitable store locations on appropriate
terms;
- our ability to grow through new
store openings and existing store remodels;
- our ability to successfully operate
and expand internationally and related risks;
- our independent franchise, license,
wholesale, and joint venture partners;
- our direct channel business;
- our ability to protect our
reputation and the image of our brands;
- our ability to attract customers
with marketing, advertising and promotional programs;
- our ability to maintain, enforce
and protect our trade names, trademarks and patents;
- the highly competitive nature of
the retail industry and the segments in which we operate;
- consumer acceptance of our products
and our ability to manage the life cycle of our brands, keep up
with fashion trends, develop new merchandise and launch new product
lines successfully;
- our ability to source, distribute
and sell goods and materials on a global basis, including risks
related to:
- political instability, environmental hazards or natural
disasters;
- significant health hazards or pandemics, which could result in
closed factories, reduced workforces, scarcity of raw materials,
and scrutiny or embargoing of goods produced in impacted
areas;
- duties, taxes and other charges;
- legal and regulatory matters;
- volatility in currency exchange rates;
- local business practices and political issues;
- delays or disruptions in shipping and transportation and
related pricing impacts;
- disruption due to labor disputes; and
- changing expectations regarding product safety due to new
legislation;
- our geographic concentration of
vendor and distribution facilities in central Ohio and Southeast
Asia;
- the ability of our vendors to
deliver products in a timely manner, meet quality standards and
comply with applicable laws and regulations;
- fluctuations in freight, product
input and energy costs, including those caused by inflation;
- our ability to adequately protect
our assets from loss and theft;
- claims arising from our
self-insurance;
- our and our third-party service
providers’ ability to implement and maintain information technology
systems and to protect associated data and system
availability;
- our ability to maintain the
security of customer, associate, third-party and company
information;
- stock price volatility;
- shareholder activism matters;
- our ability to maintain our credit
rating;
- our ability to service or refinance
our debt and maintain compliance with our restrictive
covenants;
- our ability to comply with laws,
regulations and technology platform rules or other obligations
related to data privacy and security;
- our ability to comply with
regulatory requirements;
- legal and compliance matters;
and
- tax, trade and other regulatory
matters.
Except as may be required by law, we assume no
obligation and do not intend to make publicly available any update
or other revisions to any of the forward-looking statements
contained in this press release to reflect circumstances existing
after the date of this press release or to reflect the occurrence
of future events, even if experience or future events make it clear
that any expected results expressed or implied by those
forward-looking statements will not be realized. More information
on potential factors that could affect our results is included in
“Item 1A. Risk Factors” in our Annual Report on Form 10-K filed
with the Securities and Exchange Commission on March 18, 2022.
For further information, please contact:
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Victoria’s Secret & Co.: |
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Investor Relations: |
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Media Relations: |
Kevin Wynk |
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Brooke Wilson |
investorrelations@victoria.com |
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communications@victoria.com |
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