Victoria’s Secret has achieved a slight increase in revenue in the second quarter of the fiscal year, thanks to an updated strategy focusing on product innovations and an improved customer experience.
Above expectations
In the thirteen weeks ending on August 2, the company’s net revenue rose by 3%, from 1.42 billion dollar (1.22 billion euros) to 1.46 billion dollar (1.25 billion euro). Comparable sales increased by 4%, with the international segment performing particularly well with a 21.8% increase. This result exceeded the management’s previous expectations.
However, operating income fell from 41 million dollar (34 million euros) to 62 million dollar (52 million euro), while net profit decreased from 32 million dollar (27 million euros) to 16 million dollar (14 million euros), but this is attributed to factors including the acquisition of Adore Me and the restructuring of the management team, the company says. Without these factors, operating income was 55 million dollar (46 million euros), above the previously communicated forecast.
According to CEO Hillary Super, these results reflect the initial progress of the “Path to Potential” strategy, which focuses on product innovations and an improved customer experience. The company is therefore confident despite the uncertain macroeconomic conditions.
In the Benelux, the lingerie chain has five stores: at the train stations of Amsterdam, Rotterdam, and Utrecht, and at the airports of Schiphol and Brussels Airport.
