Victoria’s Secret & Co. Announces CFO Transition and Provides Positive Update on Holiday Sales and 2024 Earnings Expectations
Victoria's Secret & Co. (VSCO) announced significant leadership changes and positive holiday sales updates. Chief Financial and Administrative Officer Timothy Johnson will retire in June 2025, with Scott Sekella, former CFO of Joann, appointed as the new CFO. The company reported improved Q4 2024 guidance, expecting results at the high end of previous forecasts.
The updated guidance includes: net sales growth of 3-4% (excluding extra week from last year), adjusted operating income of $260-270 million, and adjusted diluted EPS of $2.20-2.30. The company experienced strong momentum in North America across stores and digital channels, with increased traffic attributed to improved merchandise offerings and the VS Fashion Show impact in October.
Management noted positive performance in both Victoria's Secret and PINK brands, particularly in beauty products during the holiday season. The company reports healthy inventory positions post-holiday and January semi-annual sale.
Victoria's Secret & Co. (VSCO) ha annunciato importanti cambiamenti nella leadership e aggiornamenti positivi sulle vendite per le festività. Il Chief Financial and Administrative Officer, Timothy Johnson, si ritirerà a giugno 2025, con Scott Sekella, ex CFO di Joann, nominato nuovo CFO. L'azienda ha riportato una guida migliorata per il quarto trimestre del 2024, aspettandosi risultati nella fascia alta delle previsioni precedenti.
La guida aggiornata include: crescita delle vendite nette del 3-4% (escludendo la settimana extra dello scorso anno), reddito operativo rettificato di $260-270 milioni e EPS diluiti rettificati di $2.20-2.30. L'azienda ha sperimentato un forte slancio in Nord America attraverso negozi e canali digitali, con un aumento del traffico attribuito a un miglioramento delle offerte di merce e all'impatto del VS Fashion Show di ottobre.
La direzione ha osservato una performance positiva sia per i marchi Victoria's Secret che PINK, in particolare nei prodotti di bellezza durante il periodo delle festività. L'azienda riporta posizioni di inventario sane dopo le festività e la vendita semestrale di gennaio.
Victoria's Secret & Co. (VSCO) anunció cambios significativos en su liderazgo y actualizaciones positivas sobre las ventas navideñas. El Director Financiero y Administrativo, Timothy Johnson, se retirará en junio de 2025, y Scott Sekella, ex CFO de Joann, ha sido nombrado nuevo CFO. La compañía reportó orientaciones mejoradas para el cuarto trimestre de 2024, esperando resultados en el extremo superior de las previsiones anteriores.
La guía actualizada incluye: crecimiento de las ventas netas del 3-4% (excluyendo la semana extra del año pasado), ingreso operativo ajustado de $260-270 millones, y EPS diluido ajustado de $2.20-2.30. La compañía experimentó un fuerte impulso en América del Norte a través de tiendas y canales digitales, con un aumento del tráfico atribuido a mejoras en la oferta de mercancías y al impacto del VS Fashion Show en octubre.
La dirección destacó el desempeño positivo tanto de las marcas Victoria's Secret como PINK, particularmente en productos de belleza durante la temporada navideña. La compañía reporta posiciones de inventario saludables después de las festividades y la venta semestral de enero.
빅토리아 시크릿 & Co. (VSCO)는 주요 리더십 변화와 긍정적인 연휴 매출 업데이트를 발표했습니다. 최고 재무 및 관리 책임자(Chief Financial and Administrative Officer)인 티모시 존슨(Timothy Johnson)은 2025년 6월에 퇴직하며, 전 조안(Joann) CFO 스콧 세켈라(Scott Sekella)가 새로운 CFO로 임명됩니다. 회사는 2024년 4분기 지침이 개선되었으며, 이전 예측의 상단에서 결과가 나올 것으로 예상하고 있습니다.
업데이트된 지침에는 순매출 성장률 3-4% (작년의 추가 주 제외), 조정된 운영 수익 $260-270백만, 조정된 희석 EPS $2.20-2.30가 포함됩니다. 회사는 북미 전역의 매장과 디지털 채널에서 강력한 모멘텀을 경험했으며, 매출 증가의 요인은 개선된 상품 제공과 10월의 VS 패션쇼 영향 때문입니다.
경영진은 빅토리아 시크릿과 핑크(PINK) 브랜드 모두에서 특히 연휴 기간 동안 뷰티 제품에서 긍정적인 성과를 기록했다고 언급했습니다. 회사는 연휴 후 및 1월 반기 세일 후 건강한 재고 상황을 보고합니다.
Victoria's Secret & Co. (VSCO) a annoncé des changements significatifs dans la direction et des mises à jour positives concernant les ventes des fêtes. Le directeur financier et administratif, Timothy Johnson, prendra sa retraite en juin 2025, et Scott Sekella, ancien CFO de Joann, a été nommé nouveau CFO. L'entreprise a rapporté des prévisions améliorées pour le quatrième trimestre de 2024, s'attendant à des résultats dans le haut de la fourchette des prévisions antérieures.
Les prévisions mises à jour comprennent : croissance des ventes nettes de 3-4% (hors semaine supplémentaire de l'année dernière), revenu opérationnel ajusté de 260-270 millions de dollars et EPS dilué ajusté de 2,20 à 2,30 dollars. La société a connu un fort élan en Amérique du Nord à travers ses magasins et ses canaux numériques, avec une augmentation du trafic attribuée à des offres de marchandises améliorées et à l'impact du VS Fashion Show d'octobre.
La direction a noté une performance positive des marques Victoria's Secret et PINK, en particulier dans les produits de beauté pendant la saison des fêtes. L'entreprise rapporte des niveaux de stock sains après les vacances et les soldes semestriels de janvier.
Victoria's Secret & Co. (VSCO) hat bedeutende Veränderungen in der Führung und positive Verkaufsupdates für die Feiertagssaison bekannt gegeben. Der Chief Financial and Administrative Officer, Timothy Johnson, wird im Juni 2025 in den Ruhestand treten, und Scott Sekella, ehemaliger CFO von Joann, wurde zum neuen CFO ernannt. Das Unternehmen berichtete von einer verbesserten Prognose für das vierte Quartal 2024 und erwartet Ergebnisse am oberen Ende der vorherigen Schätzungen.
Die aktualisierte Prognose beinhaltet: Nettoverkaufswachstum von 3-4% (exklusive der zusätzlichen Woche des letzten Jahres), bereinigter operativer Gewinn von $260-270 Millionen und bereinigtes verwässertes EPS von $2.20-2.30. Das Unternehmen verzeichnete starken Schwung in Nordamerika sowohl im stationären als auch im digitalen Handel, wobei der Anstieg des Verkehrs auf die verbesserten Warenangebote und den Einfluss der VS Fashion Show im Oktober zurückzuführen ist.
Das Management stellte eine positive Leistung sowohl bei Victoria's Secret als auch bei den PINK-Marken fest, insbesondere im Bereich Kosmetikprodukte während der Feiertage. Das Unternehmen berichtet von gesunden Lagerbeständen nach den Feiertagen und dem halbjährlichen Januarverkauf.
- Raised Q4 2024 guidance to upper end of previous range
- Net sales growth projected at 3-4%
- Adjusted operating income forecast increased to $260-270 million
- Adjusted EPS guidance raised to $2.20-2.30
- Strong performance across stores and digital channels
- Increased store and website traffic
- Healthy inventory position post-holiday season
- None.
Insights
Victoria's Secret's updated Q4 guidance signals a significant turnaround momentum, with the company positioned to deliver results at the upper end of expectations. The projected 3-4% net sales growth and adjusted operating income of $260-270 million demonstrate successful execution of the company's transformation strategy.
Three key factors drive this positive performance: First, the successful product strategy focusing on newness and innovation is resonating across both Victoria's Secret and PINK brands. Second, the beauty segment's strong holiday performance indicates successful category diversification. Third, the October VS Fashion Show appears to have effectively rebuilt brand engagement, driving increased store and digital traffic.
The inventory management success through the holiday season and January semi-annual sale is particularly noteworthy, as it positions the company advantageously for Q1 2025, especially the important Valentine's Day period. This clean inventory position suggests improved operational efficiency and reduced markdown risk.
The CFO transition comes at a strategic moment, with Scott Sekella's appointment bringing valuable experience in retail transformation and operational efficiency from his roles at Joann, Under Armour and Crocs. The extended transition period until June 2025 allows for knowledge transfer and continuity in financial strategy execution. Under outgoing CFO Timothy Johnson's tenure, VS&Co successfully navigated its separation from L Brands and established itself as an independent entity, creating a strong foundation for future growth.
The company's performance is especially impressive considering the broader retail landscape, where many competitors struggled with promotional pressures during the holiday season. The improved traffic metrics suggest VS&Co is successfully recapturing market share and customer engagement through its refreshed brand positioning and merchandise strategy.
Chief Financial and Administrative Officer Timothy Johnson announces planned retirement
Seasoned retail executive Scott Sekella appointed CFO
Company now forecasts sales and earnings near the high end of expectations
REYNOLDSBURG, Ohio, Jan. 29, 2025 (GLOBE NEWSWIRE) -- Victoria’s Secret & Co. (“VS&Co” or the “Company”) (NYSE: VSCO) today announced that Chief Financial and Administrative Officer Timothy (TJ) Johnson is retiring in June 2025. Scott Sekella has been appointed Chief Financial Officer.
VS&Co Chief Executive Officer Hillary Super said, “We are excited to welcome Scott to VS&Co. He is a transformational leader with extensive and diverse retail experience delivering results, driving operational efficiencies, and executing growth strategies. He has a strong retail background and record of identifying and accelerating strategies that strengthen performance and enhance profitability which I believe make him the right partner to help lead the next chapter of growth for the company.”
Sekella most recently served as CFO of fabric and crafts retailer Joann and previously held financial leadership roles at Under Armour and Crocs.
“I want to thank TJ for his partnership and support throughout my first several months as CEO and for staying on with the business until June to ensure a smooth transition with Scott,” Super added.
VS&Co Board Chair Donna James said, “The Board wants to thank TJ for his leadership during one of the most critical periods of the company’s history, including the separation of the business from our former parent company and establishing an independent, publicly traded VS&Co. He helped us develop new strategies, drove disciplined cost and inventory management, built credibility with our stakeholders and was a consistent and strong leader. TJ is leaving the company in a strong position with a long runway for growth.”
"It has been an incredible experience to serve alongside this leadership team and Board of Directors,” said Johnson. “I am proud of what we have accomplished together and am confident the best days for Victoria’s Secret still lie ahead under Hillary’s leadership. I have enjoyed getting to know Scott and I am certain he is the right person for the role. I will work diligently to make his transition to VS&Co as smooth as possible.”
Updated Fourth Quarter 2024 Financial Guidance
In conjunction with today’s announcement of CFO retirement and transition plans, the Company is providing updated financial guidance for the fourth quarter 2024 ending February 1, 2025. Net sales, adjusted operating income, and adjusted diluted earnings per share for the fourth quarter are expected to fall within or near the top end of previously issued guidance ranges as highlighted in the table below.
| Q4 2024 Guidance | ||
| Updated 1/29/25 | Previous | |
| Net Sales (excluding the extra week last year) | + | + |
| Adjusted Operating Income | ||
| Adjusted Diluted Earnings Per Share | ||
Hillary continued, “We are pleased with our holiday results and our improved outlook for the fourth quarter. The momentum of our sales results for North America continued from third quarter through November and December across both our stores and digital channels, and our international business growth is also delivering on expectations. From a merchandise perspective, newness of product is winning and resonating with customers across both the Victoria’s Secret and PINK brands and our beauty business was a winner again this holiday season. We are experiencing increased levels of traffic to our stores and our digital site which we believe is reflective of our improved merchandise offering and the positive impact of the VS Fashion Show in late October. We exited the holiday and our January semi-annual sale in a good inventory position and ready for Valentine’s Day and first quarter selling. We look forward to sharing more details on our fourth quarter results and our expectations for 2025 on our upcoming earnings call in March.”
Forecasted adjusted operating income and adjusted diluted earnings per share for the fourth quarter exclude the financial impact of purchase accounting items related to the Adore Me acquisition, including 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 diluted earnings per share to the most directly comparable forward-looking GAAP 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 Victoria’s Secret & Co.
Victoria’s Secret & Co. (NYSE: VSCO) is a 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 supporting women in all they do, and Adore Me, a technology-led, digital first innovative intimates brand serving women of all sizes and budgets at all phases of life. We are committed to empowering our approximately 30,000 associates across a global footprint of more than 1,380 retail stores in nearly 70 countries. We strive to provide the best products to help women express their confidence, sexiness and power and use our platform to celebrate the extraordinary diversity of women’s experiences.
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, and any future performance or financial results expressed or implied by such forward-looking statements are not guarantees of future performance. 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,” “will,” “target,” “goal,” “project,” “plan,” “believe,” “seek,” “strive,” “expect,” “anticipate,” “intend,” “continue,” “potential” and any similar expressions are intended to identify forward-looking statements. Risks associated with the following factors, among others, could affect our results of operations and financial performance and cause actual results to differ materially from those expressed or implied in any forward-looking statements:
- we may not realize all of the expected benefits of the spin-off from Bath & Body Works, Inc. (f/k/a L Brands, Inc.);
- 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;
- our ability to successfully implement our strategic plan;
- 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 traffic to our stores and the availability of suitable store locations on satisfactory terms;
- our ability to successfully operate and expand internationally and related risks;
- the operations and performance of our franchisees, licensees, wholesalers and joint venture partners;
- our ability to successfully operate and grow our direct channel business;
- our ability to protect our reputation and the image and value 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, remain current with fashion trends, and develop and launch new merchandise, product lines and brands successfully;
- our ability to realize the potential benefits and synergies sought with the acquisition of AdoreMe, Inc.;
- our ability to incorporate artificial intelligence into our business operations successfully and ethically while effectively managing the associated risks;
- our ability to source materials and produce, distribute and sell merchandise on a global basis, including risks related to:
- political instability and geopolitical conflicts;
- environmental hazards and natural disasters;
- significant health hazards and pandemics;
- delays or disruptions in shipping and transportation and related pricing impacts; and
- disruption due to labor disputes;
- our geographic concentration of production and distribution facilities in central Ohio and Southeast Asia;
- the ability of our vendors to manufacture and deliver products in a timely manner, meet quality standards and comply with applicable laws and regulations;
- fluctuations in freight, product input and energy costs;
- 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 Securities and Exchange Commission on March 22, 2024.
For further information, please contact:
| Victoria’s Secret & Co.: | |
| Investor Relations: | Media Relations: |
| Kevin Wynk investorrelations@victoria.com | Brooke Wilson communications@victoria.com |
FAQ
What is Victoria's Secret (VSCO) updated Q4 2024 sales guidance?
What is VSCO's projected adjusted EPS for Q4 2024?
Who is replacing Timothy Johnson as Victoria's Secret CFO?
What is VSCO's expected adjusted operating income for Q4 2024?
How did Victoria's Secret perform during the 2024 holiday season?
