Victoria's Secret to earn its wings back amid fashion show return

Victoria's Secret, one in the full realm's largest intimate specialty retailers, is determined to have its biggest year yet amid the return of its iconic fashion show and a fresh CEO.

The company's important upcoming steps shall be Victoria's Secret's last chance to regain its wings and strut its way back into its customer's hearts.

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In late August, Victoria's Secret (VSCO) reported earnings per share of $0.40, beating analysts' expectations of $0.38 by 5% for Q2 of fiscal year 2024.

Nevertheless, deeper examination of the print reveals a Q2 earnings report with some issues.

The company's net sales dropped nearly 1% year over year to approximately $1.Forty two billion in Q2. Total comparable sales declined by Three% when in comparison with Q2 of last fiscal year.

Net sales increased by 6.Four% internationally, but net sales in North American stores by myself declined by 2.1% when in comparison with the previous fiscal year's Q2.

New CEO and a fashion show return

Earlier this year, Victoria’s Secret named Hillary Super, former CEO of Rihanna's Savage X Fenty, as its new CEO.

The company's lackluster performance in Q2 will do little to ease the transition for its new CEO, who's set to initiate her new role on September ninth of this year.

This year will even mark the return of the infamous Victoria's Secret Fashion Show, set to take place October 15 in New York City after a 6-year hiatus.

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The cancellation of the Victoria's Secret Fashion Show

After a 17-year run, the enduring fashion became officially canceled in 2019, making the 2018 Victoria's Secret fashion show its last one until now.

This cancelation came after a run of bad press involving allegations of misogyny and other controversies.

The company landed itself into even muddier waters when the former Marketing Chief stated that transgender and plus-size models did now no longer align with the logo.

Nevertheless, Victoria's Secret's lack of inclusivity, perfect body interpretations, and encouragement of diet culture were only 1 of a few multiple reasons why the rage show reached its end.

In May 2022, the company landed itself in court for alleged claims of sexual harassment and misogyny against the models by high-power men in the company. The company in the tip reached a $90 million settlement with the models, but Victoria's Secret's reputation remained damaged.

In keeping with Victoria's Secret announcement, the 2024 fashion show will reflect 'who the company is at the present time' and revive the full thing it truly is iconically known for.

Victoria's Secret guidance

With so many big changes within the company's executive suite and events calendar, this refreshing new era shall be Victoria's Secret's last chance to indicate the year around.

In keeping with Victoria's Secret's outlook, sales for the remainder of fiscal year 2024 are forecast to decline by 1% when in comparison with fiscal year 2023.

The company expects operating income to amplify by a mean of $287.5 million for the remainder of fiscal year 2024, increasing nearly 9% from the prior guidance average for an identical year.

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Despite the company's performance in Q2 of fiscal year 2024, its stock remains over 31% higher than a year ago, signaling a robust potential incline in the upcoming months.

Net sales in North The U.S. declined when in comparison with a year ago, but have been improving for the past four quarters.

"The improvement is driven by newness and product acceptance, specifically in the VS and PINK brands. We predict North The U.S. business trends to continue improving. While the general market may remain tough, our business is showing sequential improvement," said Chief Finance and Administrative Officer Tim Johnson on the earnings call.

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