Victoria’s Secret & Co. ( NYSE: VSCO ) stock edged lower in Thursday’s extended session after issuing cautious guidance into the start of 2023.
For the fourth quarter, the lingerie retailer posted narrow beats on top and bottom lines. A report of $2.47 in adjusted earnings per share beat the Street consensus by $0.13 while $2.02B in revenue rose $10M above analyst expectations.
However, CEO Martin Waters offered a modicum of caution heading into 2023.
In the holiday quarter, our teams controlled what they could control despite a challenging economic environment for our customer, delivered fourth quarter adjusted operating income and adjusted earnings per diluted share above our most recent guidance, and exited the year with Victoria’s Secret and PINK inventory levels down double digits on an adjusted basis — prudently positioned to begin 2023,” he said. “As we look into the new year, we recognize the environment will likely remain challenging for the foreseeable future.”
The Company is forecasting first quarter 2023 net sales to decrease in the mid-single digit range as compared to Q1 2022. Management offered a wide EPS guidance range, between $0.30 to $0.60, coming in below the $0.86 consensus.
The company is forecasting full year 2023 net sales to increase in the mid-single digit range as compared to 2022 net sales of $6.34B. Analysts had forecast about a 3.3% rise in revenue. The retailer’s adjusted operating income rate for the full year 2023 is expected to be similar to 2022.
Shares of the Ohio-based specialty retailer fell 2.16% in after hours trading on Thursday.
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Victoria’s Secret stock slips on soft Q1 profit guide