Buyers stand in line as they watch for a Victoria’s Secret retailer to open on Black Friday, on the Tysons Nook Middle, in Tysons, Virginia, November 27, 2020.
Hannah McKay | Reuters
Victoria’s Secret father or mother L Manufacturers mentioned Thursday its same-store gross sales in the course of the vacation interval grew 5%, in contrast with a 3% drop a yr in the past, as buyers purchased extra lounge put on, hand cleaning soap and candles forward of the brand new yr.
CEO Andrew Meslow mentioned the corporate’s vacation outcomes “considerably exceeded our preliminary expectations,” as efforts to chop again on promotions and promote extra merchandise at full worth paid off.
The retailer, which additionally owns Tub & Physique Works, is now calling for fourth-quarter earnings to be between $2.70 and $2.80 per share. Analysts have been anticipating $1.96, in response to Refinitiv knowledge.
L Manufacturers is concentrating on fourth-quarter income of $3.84 billion. Analysts had been calling for $4.74 billion.
Shares have been up lower than 1% in premarket buying and selling, having surged almost 140% over the previous 12 months.
For the nine-week interval ended Jan. 2, L Manufacturers reported web gross sales of $3.84 billion, down 1.8% from $3.91 billion for the comparable year-ago interval.
Inside Victoria’s Secret, same-store gross sales — which monitor gross sales each on-line and in shops open for at the very least 12 months — fell 9% in the course of the vacation interval, with the metric falling 23% in brick-and-mortar shops, due largely to mall visitors declining in the course of the pandemic. The common worth spent on an merchandise at Victoria’s Secret was up, it mentioned.
Identical-store gross sales for Tub & Physique Works have been up 17%, together with a 5% acquire in shops.
“Tub & Physique Works continues to ship report outcomes, demonstrating the energy of the model,” Meslow mentioned in an announcement.
“The turnaround at Victoria’s Secret additionally continues to achieve momentum, pushed by an improved merchandise assortment and targeted execution of retail fundamentals and our revenue enchancment plan,” he added.
L Manufacturers is anticipated to report fourth-quarter earnings on Feb. 24.
Discover the complete vacation outcomes from L Manufacturers right here.