Victoria’s Secret has postponed its earnings release following a cybersecurity incident, but said its net sales last quarter were set to beat its guidance.
The company discovered a security breach in its IT system on 24 May, and engaged external experts to stop unauthorised parties from accessing its network. While Victoria’s Secret temporarily shuttered its online corporate and e-commerce systems last month due to the issue, this did not impact its first-quarter earnings.
“The Company continues to assess the full scope and impact of the incident, under the oversight of the Audit Committee of the Board of Directors,” according to Victoria’s Secret.
“Although this incident has not caused a material disruption to its operations to date, the Company has incurred, and may continue to incur, expenses and other financial impacts related to this incident, which could negatively impact its future financial results, including for the second quarter of fiscal 2025.”
Victoria’s Secret has postponed the release of its finalised results, as it continues working to restore full access to the online corporate systems needed for its earnings release. The company has instead issued its preliminary earnings data, and said a new date for its earnings report and webcast will be announced “in due course”.
According to its preliminary financial results, the company’s net sales were US$1.35 billion last quarter, surpassing guidance of $1.30-1.33 billion and FactSet estimates of $1.33 billion. Net sales in 2024’s first quarter were $1.36 billion.
Adjusted earnings per diluted share were US$0.09, at the high end of guidance and above its loss per share of $0.05 one year ago. FactSet analysts expected $0.04.
The company’s adjusted operating income reached US$32 million, beating guidance of $10-30 million and up from $26.3 billion year-over-year.
Victoria’s Secret & Co’s (NYSE: VSCO) share price closed at US$20.27 after a previous close of $20.83, and then lifted to $20.48 in after-hours trading. Its market capitalisation is $1.62 billion.
