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Victoria's Secret $VSCO & Co. reported first-quarter net sales of $1.56 billion on Tuesday, a 15% increase from a year earlier, and raised its full-year guidance for both sales and adjusted operating income.
For the fiscal first quarter ending May 2, Victoria's Secret earned $47.7 million in net income, translating to 56 cents per diluted share; a year ago, the company posted a net loss of $1.66 million, or 2 cents per diluted share. After stripping out one-time restructuring charges, the company's adjusted earnings came to 60 cents per share, well above the 30-cent consensus estimate, while its $1.56 billion in revenue cleared the $1.52 billion analysts had forecast, according to CNBC.
Comparable sales rose 13% during the quarter, the company's fourth consecutive period of positive comps. The company said double-digit growth was recorded across its Victoria's Secret, PINK, and Beauty brands, as well as across stores, direct, and international channels. International sales rose nearly 45% to $287.4 million.
On the strength of the quarter's results, Victoria's Secret lifted its annual sales target to a band of $7.03 billion to $7.13 billion; the previous forecast had topped out at $6.95 billion. The upgraded outlook also pushed the adjusted operating income range up to $550 million to $580 million from $430 million to $460 million, a midpoint gain exceeding $100 million.
