1. News
March 3, 2022

Victoria’s Secret registers 25% full-year sales rise for FY21

The company expects its first-quarter sales for FY22 to be between $1.42bn to $1.5bn.

US-based fashion and beauty retailer Victoria’s Secret has registered a 25% increase in sales to $6.78bn for the fiscal year 2021 (FY21), against $5.41bn in 2020.

The company’s total comparable sales increased by 3% year-on-year.

Victoria’s Secret generated a net income of $646.4m, having registered a net loss of $72.3m in 2020.

The retailer’s diluted earnings per share (EPS) for the year were $7.18, compared with a loss of $0.82 for each share in the prior year.

Victoria’s Secret reported an operating income of $869.5m for FY21, against an operating loss of $101.5m in 2020.

During the fourth quarter (Q4), which ended on 29 January, the company’s sales grew by 4% to $2.2bn compared with $2.1bn in the same period of last year.

Its comparable sales also rose by 1% from Q4 2020.

Victoria’s Secret’s net income for the quarter dropped from $282.4m to $246.1m year-on-year.

The firm’s EPS for the three-month period was $2.70, down from $3.20 a year earlier.

During the year, Victoria’s Secret completed a $250m accelerated share repurchase programme and announced a new $250m share repurchase programme.

Impacted by incremental supply chain cost pressures and other factors, the company’s Q4 operating income decreased to $333.2m against $387.9m in the corresponding period of last year.

Victoria’s Secret CEO Martin Waters said: “I am pleased with our fourth-quarter performance in a challenging retail environment.

“Our associates across the globe focused on execution and delivered upon all of our financial expectations while continuing to transform our brand, enhance our customer experience and strengthen our dominant merchandise positioning in the intimates category.”

For FY22, Victoria’s Secret expects its sales to be between flat to up by low-single digits against 2021.

The retailer has forecast first-quarter sales in the range of $1.42bn and $1.5bn.