Chief Executive Officer
Martin continued, 'We are excited with early holiday sales trends in November in
Martin concluded, 'With the long-term health of the business in mind, we are energized by the positive signs in the business and remain committed to our strategic priorities: 1) Accelerate Our Core; 2) Ignite Growth; and 3) Transform the Foundation. At our Investor Day in October, we discussed our key focus on accelerating our core, and our initiatives designed to leverage our market leadership position and unlock our opportunity to convert our significant cultural influence into long-term financial growth. We believe our evolving strategies will position the business to deliver the potential of our category-defining
Third Quarter Results
The Company reported a net loss of
Excluding the impact of the items described at the conclusion of this press release, third quarter 2023 adjusted net loss was
The Company reported net sales of
Adjusted net income (loss) and adjusted operating income (loss) are non-GAAP financial measures. At the conclusion of this press release, we have included more information regarding these non-GAAP financial measures, including a reconciliation of each non-GAAP financial measure to the most directly comparable financial measure reported in accordance with GAAP.
Fourth Quarter and Full Year 2023 Outlook
The Company is forecasting fourth quarter 2023 net sales to increase in the range of 2% to 4% compared to last year's fourth quarter net sales of
The Company is forecasting full year 2023 net sales to decrease in the range of 2% to 3% compared to last year. At this forecasted level of sales, adjusted operating income for the year is expected to be in the range of
Forecasted adjusted operating income and adjusted net income per diluted share for the full year and fourth quarter 2023 excludes the financial impact of purchase accounting items related to the Adore Me acquisition, including recognition in gross profit of purchase accounting fair value adjustments to acquired inventories as it is sold and expense (income) related to changes in the estimated fair value of contingent consideration and performance-based payments, as well as the amortization of intangible assets. The Company is not able to provide a reconciliation of forward-looking adjusted operating income or adjusted net income per diluted share to the most directly comparable forward-looking GAAP financial measures because the Company is unable to provide a meaningful or accurate reconciliation or estimation of certain reconciling items without unreasonable effort, due to the inherent difficulty in forecasting the timing of, and quantifying, the various purchase accounting items that are necessary for such reconciliation.
About
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
the spin-off from
we may not realize all of the expected benefits of the spin-off;
general economic conditions, inflation, and changes in consumer confidence, and consumer spending patterns;
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;
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 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;
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 realize the potential benefits and synergies sought with the acquisition of
our ability to incorporate artificial intelligence into our business operations successfully and ethically while effectively managing the associated risks;
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;
legal and regulatory matters;
delays or disruptions in shipping and transportation and related pricing impacts; and
disruption due to labor disputes;
our geographic concentration of vendor and distribution facilities in central
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 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 comply with regulatory requirements; and
legal, 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. Additional information regarding these and other factors can be found in 'Item 1A. Risk Factors' in our Annual Report on Form 10-K filed with the
Total Sales (Millions): see full release at:
https://www.victoriassecretandco.com/news-releases/news-release-details/victorias-secret-co-reports-third-quarter-2023-results-within
For further information, please contact:
Investor Relations: Media Relations:
Kevin Wynk Brooke Wilson
investorrelations@victoria.com communications@victoria.com
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