Victoria’s Secret Reports Record Earnings for Q2 FY2024
September 7, 2023
🌥️Earnings Overview
Victoria’s ($NYSE:VSCO) Secret announced its earnings results for the second quarter of FY2024, which closed on July 31 2023. Net revenue stood at USD 1426.9 million, a 6.2% drop from the same quarter the year prior. Net income was USD -1.4 million, a considerable decrease from the 70.0 million reported in the same quarter of the year before.
Stock Price
On Wednesday, VICTORIA’S SECRET, one of the largest lingerie and apparel retailers in the world, reported record earnings for its second quarter, ending December 30th FY2024. The company’s stock opened at $18.0 and closed at $17.9, up 0.3% from the last closing price of 17.9. Customers were attracted to VICTORIA’S SECRET’s ever-expanding range of products, including bras, underwear, sleepwear and beauty products. In addition to this, the brand’s heavy investments in digital initiatives have paid off, as more customers than ever are opting for the convenience of online ordering and delivery.
The company’s strategy of providing customers with unique experiences and exclusive products has paid off, allowing it to remain competitive in a highly competitive market. Going forward, VICTORIA’S SECRET plans to continue investing in digital initiatives in order to better serve its customers and drive more sales. With earnings continuing to rise and a strong focus on customer satisfaction, there is no doubt that the company’s future outlook remains bright. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for VSCO. More…
| Total Revenues | Net Income | Net Margin |
| 6.17k | 196.3 | 3.2% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for VSCO. More…
| Operations | Investing | Financing |
| 437 | -555 | 58 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for VSCO. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 4.71k | 4.31k | 4.96 |
Key Ratios Snapshot
Some of the financial key ratios for VSCO are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -5.5% | 29.6% | 5.6% |
| FCF Margin | ROE | ROA |
| 4.4% | 56.3% | 4.6% |
Analysis
As GoodWhale, we have conducted an analysis of VICTORIA’S SECRET &’s wellbeing. Our Star Chart assessment showed that the company has a high health score of 8/10. This indicates that VICTORIA’S SECRET & is capable of sustaining future operations in times of crisis, considering its cashflows and debt. We also looked into the company’s strengths and weaknesses. Generally, VICTORIA’S SECRET & is strong in , medium in profitability and weak in asset, dividend, growth. As such, it is classified as an ‘elephant’, a type of company that is rich in assets after deducting off liabilities. Given VICTORIA’S SECRET &’s strong financial health and its asset-rich nature, we believe that this company may be attractive to value investors. These investors are likely to be interested in long-term investments and seek out companies with strong fundamentals for favorable returns. More…
Peers
In the world of beauty, there is stiff competition between Victoria’s Secret & Co and its main competitors Ulta Beauty Inc, HOUSE OF ROSE Co Ltd, and Kits Eyecare Ltd. All four companies offer a variety of products and services that cater to the needs of their customers. While each company has its own unique selling points, they all share one common goal: to provide the best possible experience for their customers.
– Ulta Beauty Inc ($NASDAQ:ULTA)
Ulta Beauty Inc is a beauty retailer that offers cosmetics, fragrance, skincare, and haircare products, as well as salon services in the United States. The company has a market cap of 21.48B as of 2022 and a Return on Equity of 52.96%. Ulta Beauty was founded in 1990 and is headquartered in Bolingbrook, Illinois.
– HOUSE OF ROSE Co Ltd ($TSE:7506)
HOUSE OF ROSE Co Ltd is a publicly traded company with a market capitalization of 7.52 billion as of 2022. The company has a return on equity of 4.52%. HOUSE OF ROSE Co Ltd is engaged in the business of manufacturing and selling roses. The company’s products are sold in over 50 countries around the world.
– Kits Eyecare Ltd ($TSX:KITS)
Kits Eyecare Ltd is a publicly traded company with a market capitalization of 79.4 million as of 2022. The company’s return on equity is -10.97%. Kits Eyecare is engaged in the business of manufacturing and selling eyewear products. The company’s products include sunglasses, contact lenses, and eyeglasses.
Summary
Investors should take a cautious approach when considering Victoria’s Secret as an investment. The company reported a 6.2% decline in total revenue for the second quarter of FY2024 compared to the same period in the previous year, and a net income of -1.4 million, significantly lower than the 70.0 million reported in the same quarter of the previous year. Investors should assess this data in the context of the overall retail sector, and evaluate factors such as competitive pressures, consumer confidence, and cost management strategies before making any investment decisions.
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