Victoria’s Secret & Co. (NYSE:VSCO) shares are trading lower on Thursday after the company reported fourth-quarter results and initiated a strategic review of its non-core asset, DailyLook.
Earnings Snapshot
Net sales rose 8% year over year (Y/Y) to $2.270 billion, slightly above the consensus of $2.23 billion.
The company reported an operating income of $229 million versus $268 million in the prior-year quarter. Adjusted EPS of $2.77 beat a $2.52 estimate.
Segment Results
By channel, net sales were $1.22 billion from Stores – North America, up 5.2% Y/Y; $773.2 million from Direct, up 2.8% Y/Y; and $276.4 million from International, up 43.1% Y/Y. Total comparable sales increased 8% in the quarter.
The company stated that last year’s results include an approximately $26 million benefit to sales, gross margin and operating income.
Excluding the impact of last year’s accounting estimate change related to outstanding gift cards, net sales rose about 9% year over year from roughly $2.08 billion.
Adjusted operating income increased about 16% Y/Y, while adjusted diluted EPS grew about 18% Y/Y.
The …