Transformation of Victoria’s Secret Hindered By Slow Consumer Spending

Victoria’s Secret is still trying to find footing with its brand transformation, but the company said Wednesday (Aug. 24) in earnings materials released along with a conference call that some of its financial results have been within the expected range as it continues with this project.

For the quarter ended July 30, the company reported in a press release that its net sales slipped 6% year over year. That result was below its previous guidance, and the company attributed the drop to slower customer traffic trends seen throughout the retail environment.

“We have made much progress but recognize this transformation is a journey, and our work continues to become the Victoria’s Secret our customers and associates deserve — where everyone feels seen, respected and valued,” Victoria’s Secret CEO Martin Waters said in the release.

As PYMNTS reported in June at the time of Victoria Secret’s previous earnings call, the company’s shift away from its focus on sexy models and skimpy lingerie in favor of a more inclusive approach may be struggling to gain traction so far with customers.

Read more: Victoria’s Secret Still Growing Into Its New Identity

Waters said in the Wednesday press release that the brand transformation continues to be well received by its customers, that the company continues to be the market leader in its category and that it delivered some financial results within its guidance range despite the difficult macroeconomic environment.

The company also reported in a Wednesday earnings commentary that it has improved its customer experience by expanding the Amazon storefront it launched in April.

Looking ahead, Victoria’s Secret said it expects full-year 2022 sales to decrease by mid- to high-single-digits, according to the earnings commentary.

“We expect customers will continue to be challenged by inflationary and other financial pressures for the balance of 2022, and we have adjusted our inventory position and cost structure accordingly while allowing for continued investment in growth initiatives,” Waters said in the release.

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