Bill McColl
1 min read
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Victoria's Secret lowered its full-year operating income guidance on higher costs from new tariffs.
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The lingerie and other women's apparel maker expects tariffs to add $50 million in expenses.
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Victoria's Secret reported better-than-expected revenue in its first quarter earnings report, which was delayed because of a cyberattack last month.
Shares of Victoria's Secret (VSCO) fell Wednesday as the maker of lingerie and other women's apparel lowered its full-year outlook when it released its delayed first-quarter financial report.
The announcement had been held up by a cyberattack that disrupted the company's operations in late May.
Victoria's Secret maintained its full-year net sales outlook of $6.2 billion to $6.3 billion, but it now anticipates the tariffs will cost an additional $50 million. Therefore, it has lowered its expected adjusted operating income to be in the range of $270 million to $320 million from the previous prediction of $300 million to $350 million.
In the first quarter, the company posted adjusted earnings per share of $0.09, in line with Visible Alpha forecasts. Revenue declined 0.5% year-over-year to $1.35 billion, but that topped narrowly topped estimates.
CFO Scott Sekella noted that while the macroeconomic environment is uncertain, Victoria's Secret "will continue to be disciplined in controlling costs and will remain agile." The company cut general, administrative, and store operating expenses 4% to $454.4 million.
Victoria's Secret shares fell nearly 3% Wednesday morning and have lost nearly half their value this year.
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