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Victoria’s Secret raises Q4 EPS view to $2.25-$2.35 from $2.05-$2.25
The Fly

Victoria’s Secret raises Q4 EPS view to $2.25-$2.35 from $2.05-$2.25

Consensus for Q4 EPS is $2.24. Raises Q4 revenue growth view to a decline of (8%)-(7%) from prior guidance of a high-single digit decline. Q4 operating income is now forecasted to be $265M-$275M, or approximately 13% to 14% of sales, above previous guidance of $245M-$265M. All updated Q4 guidance excludes the financial impact of the recent acquisition of AdoreMe as well as transaction costs and purchase accounting related to this transaction. CEO Martin Waters commented, "Our teams executed our strategies very well against a challenging economic environment for our customer during the holiday quarter. Our sales performance was at the better end of our guidance with margins solidly in line with our expectations despite our response to a very promotional environment during the holiday season. With diligent focus, we accomplished this outcome and will end the year with inventory levels down low double digits when accounting for modal mix shifts, and expect an expense outcome at the better end of our range..As we turn the page to the new year, we recognize the economic environment is not ideal and may cause 2023 results to look similar to the year we just finished. However, we are evolving and innovating our business and have organic growth strategies and new customer experiences well identified and ready to launch during 2023. We have a recently acquired business in Adore Me with double digit growth plans and with technologies we plan to leverage in our core Victoria’s Secret and Victoria’s Secret PINK brands…"

Published first on TheFly

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