Victoria’s Secret & Co. (VSCO) stock soared 11.66% in the after-hours trading session at the price of $56.4 after announcing its financial results for the third quarter ended 30th October 2021.
Victoria’s Secret is one of the largest intimate specialty retailers. The company offers a variety of fashion-inspired collections like signature bras, panties, underwear, athleisure, casual sleepwear, and swimsuits. It also sells award-winning prestige perfumes and body care products.
VSCO Third Quarter Earnings Report
On 17th November 2021, VSCO announced its financial results for the third quarter ended 30th October 2021 and provided a future outlook.
Management Comments
Chief executive officer of VSCO, Martin Waters, stated that he is happy with their solid third-quarter results. The high performance reflects growth in all business sections. They will improve the merchandise assortment and grow their already strong consumer file, he added.
VSCO Financial Highlights
For the third quarter of 2021, VSCO reported a net income of $75.2 million, or $0.81 earnings per diluted share. The previously announced guidance was $0.60 to $0.70 earnings per diluted share. Net income was $143.4 million, or $1.62 earnings per share, for the third quarter of 2020. Adjusted net income was $72.6 million, or $0.82 adjusted earnings per share, for the quarter ended 31st October 2020.
VSCO reported an operating income of $107.9 million for the third quarter ended 30th October 2021. For the third quarter of 2020, operating income was $127.4 million, and adjusted operating income totaled $97.5 million. Operating income in the third quarter of 2021 grew 11% over adjusted operating income in the third quarter of 2020.
VSCO reported $1.441 billion in net sales for the third quarter ended 30th October 2021. It represents a gain of 7% from net sales of $1.353 billion for the third quarter of the previous year. The sales totaled $1.577 billion in the third quarter of 2019. In the third quarter of 2021, total comparable sales grew 4% from the third quarter of 2019.
Fourth Quarter 2021 Outlook
For the fourth quarter of 2021, VSCO expects its sales to up 3% from the fourth quarter 2020 sales of $2.100 billion. Diluted earnings per share have expected to range from $2.35 to $2.65 for the fourth quarter of 2021.
