![]() “ beat on better-than-consensus, with management flagging improving traffic conversion over the Black Friday-Cyber Monday period, while still suggesting willingness ‘to be aggressive in getting our fair share of consumer spending’ across what they expect will prove a competitive rest of 4Q,” Simeon Siegel, managing director at BMO Capital Markets, wrote in a note. The company’s stock is down more than 20 percent, year-over-year.Īnalysts, however, were a little bit more optimistic. Shares of Victoria’s Secret closed down 6.28 percent Thursday to $43.11 apiece. The transaction is expected to close in January.ĭespite Waters’ bullishness, investors were not convinced. And so there are two very good reasons for us to be a good owner for that brand.” And secondly, it’s a technology company where we can leverage some of their great capability and skill set inside of our larger base of customers. And pointing at the value sector of the market that we don’t currently compete in and that gives us a great source of growth. It’s a stand-alone business that is incredibly successful and growing. In regards to the Adore Me acquisition, Waters said: “It’s a terrific company. That’s what we get paid to do and that’s what we’re focused on.” So it’s all focused on execution right now. We feel very well set up in terms of inventory, in terms of promotions, in terms of the activity we’ve got in the pipe. ![]() “December is the most important month of the year. “I think we’re holding our own,” he said. The beauty business remained a growth driver during the most recent quarter. So we’re more like 80-20, 80 percent committed, 20 percent open.”Ĭamila Cabello for Victoria’s Secret Beauty. That 30 percent is open because with the economic outlook, the way that it is, and sales being pressured, it would be unwise to spend those open dollars. We were more like 70 percent bought, 30 percent open. We didn’t get quite back to that level this fall. “When the business is at its best, we would start the fall season about 60 percent bought and about 40 percent open. “But where really bites is in our ability to enter a new season open,” Waters said, referring to the firm’s ability to purchase inventory in advance. Waters was quick to point out additional obstacles, too, such as inventory challenges and a more rigid-than-normal future purchasing budget. ![]() The CEO spoke with analysts just one day after releasing quarterly earnings results that fell short on both top and bottom lines thanks to consistent inflation and price-conscious shoppers. Sleepwear is a strong category around the holidays. Customers were out over Black Friday weekend and they’re stocking up, looking to buy Christmas gifts.” “ since Black Friday, our customers have responded positively and we’ve been very pleased with an uptick in the trend and our level of performance. “In these difficult times, she is looking for a deal and she’s looking for help she’s looking at the best brands in the market to recognize that times are difficult and to give her a helping hand,” he continued. ![]() We made the decision that it was appropriate to be more promotional than we had been in the previous year, to be more promotional than we have been in the balance of Q3 in order to make sure that we were fighting as hard as we possibly could. “As such, we expect continued sales and margin volatility. “We remain mindful of the continued economic headwinds and pressure on our customer that will likely drive a highly promotional retail environment,” Waters explained. ![]()
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