Victoria's Secret Files Q2 2024 10-Q

Ticker: VSCO · Form: 10-Q · Filed: 2024-09-06T00:00:00.000Z

Sentiment: neutral

Topics: 10-Q, financials, retail, earnings

Related Tickers: L Brands (LB)

TL;DR

VSCO 10-Q filed: Q2 2024 financials out. Check balance sheet & income statement.

AI Summary

Victoria's Secret & Co. filed its 10-Q for the period ending August 3, 2024. The company reported financial results for the second quarter of fiscal year 2024, detailing its revenues, expenses, and net income. The filing also includes updates on the company's financial position, including assets, liabilities, and equity as of August 3, 2024, and compares them to the previous fiscal year.

Why It Matters

This filing provides investors with a detailed look at Victoria's Secret's financial performance and health during the second quarter, impacting stock valuation and future investment decisions.

Risk Assessment

Risk Level: medium — 10-Q filings are standard financial reports, but the specific details within can reveal significant financial performance or challenges.

Key Numbers

Key Players & Entities

FAQ

What were Victoria's Secret's total revenues for the second quarter of fiscal year 2024?

The filing indicates the reporting period ended August 3, 2024, and would contain detailed revenue figures for the quarter, though specific dollar amounts are not directly extracted in this summary.

How does Victoria's Secret's financial position on August 3, 2024, compare to the previous fiscal year?

The 10-Q provides comparative balance sheet information, detailing assets, liabilities, and equity as of August 3, 2024, and comparing them to the prior fiscal year's end.

What is the accession number for this Victoria's Secret 10-Q filing?

The accession number for this filing is 0001856437-24-000029.

What is the standard industrial classification for Victoria's Secret & Co.?

The Standard Industrial Classification for Victoria's Secret & Co. is RETAIL-WOMEN'S CLOTHING STORES [5621].

When was Victoria's Secret & Co. formerly known by another name?

The company was formerly known as Victorias Secret & Co. and the date of the name change was April 12, 2021.

Filing Stats: 4,928 words · 20 min read · ~16 pages · Grade level 16.3 · Accepted 2024-09-06 16:16:49

Key Financial Figures

Filing Documents

Financial Information

Part I. Financial Information

Financial Statements*

Item 1. Financial Statements* Consolidated Statements of Income (Loss) for the Thirteen-Weeks and T wenty - Six -Weeks Ended August 3 , 2024 and July 29, 2023 (Unaudited) 3 Consolidated Statements of Comprehensive Income (Loss) for the Thirteen-Weeks and Twenty-Six-Weeks Ended August 3, 2024 and July 29, 2023 (Unaudited) 3 Consolidated Balance Sheets as of A ugust 3 , 2024 (Unaudited), February 3, 2024 and July 29, 2023 (Unaudited) 4 Consolidated Statements of Equity for the Thirteen-Weeks and Twenty-Six-Weeks Ended August 3, 2024 and July 29, 2023 (Unaudited) 5 Consolidated Statements of Cash Flows for th e Twenty-Six-Weeks Ended August 3, 2024 and July 29, 2023 (Unaudited) 7

Notes to Consolidated Financial Statements (Unaudited)

Notes to Consolidated Financial Statements (Unaudited) 8 Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995 19

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 20

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 32

Controls and Procedures

Item 4. Controls and Procedures 33

Other Information

Part II. Other Information 34

Legal Proceedings

Item 1. Legal Proceedings 34

Risk Factors

Item 1A. Risk Factors 34

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 34

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 34

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 34

Other Information

Item 5. Other Information 34

Exhibits

Item 6. Exhibits 35 Signature 36 * Victoria's Secret & Co.'s fiscal year ends on the Saturday nearest to January 31. As used herein, "second quarter of 2024" and "second quarter of 2023" refer to the thirteen-week periods ended August 3, 2024 and July 29, 2023, respectively. "Year-to-date 2024" and "year-to-date 2023" refer to the twenty-six-week periods ended August 3, 2024 and July 29, 2023, respectively, and "fiscal year 2024" and "fiscal year 2023" refer to the fifty-two-week period ending February 1, 2025 and the fifty-three-week period ended February 3, 2024, respectively. 2 Table of Contents

—FINANCIAL INFORMATION

PART I—FINANCIAL INFORMATION

FINANCIAL STATEMENTS

Item 1. FINANCIAL STATEMENTS VICTORIA'S SECRET & CO. CONSOLIDATED STATEMENTS OF INCOME (LOSS) (in millions except per share amounts) (Unaudited) Second Quarter Year-to-Date 2024 2023 2024 2023 Net Sales $ 1,417 $ 1,427 $ 2,777 $ 2,834 Costs of Goods Sold, Buying and Occupancy ( 916 ) ( 940 ) ( 1,774 ) ( 1,845 ) Gross Profit 501 487 1,003 989 General, Administrative and Store Operating Expenses ( 439 ) ( 461 ) ( 914 ) ( 935 ) Operating Income 62 26 89 54 Interest Expense ( 21 ) ( 24 ) ( 43 ) ( 46 ) Other Income — — — — Income Before Income Taxes 41 2 46 8 Provision for Income Taxes 9 3 16 5 Net Income (Loss) 32 ( 1 ) 30 3 Less: Net Income Attributable to Noncontrolling Interest — — 2 4 Net Income (Loss) Attributable to Victoria's Secret & Co. $ 32 $ ( 1 ) $ 28 $ ( 1 ) Net Income (Loss) Per Basic Share Attributable to Victoria's Secret & Co. $ 0.41 $ ( 0.02 ) $ 0.36 $ ( 0.01 ) Net Income (Loss) Per Diluted Share Attributable to Victoria's Secret & Co. $ 0.40 $ ( 0.02 ) $ 0.35 $ ( 0.01 ) VICTORIA'S SECRET & CO. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (in millions) (Unaudited) Second Quarter Year-to-Date 2024 2023 2024 2023 Net Income (Loss) $ 32 $ ( 1 ) $ 30 $ 3 Other Comprehensive Loss, Net of Tax: Foreign Currency Translation — — ( 1 ) ( 2 ) Total Other Comprehensive Loss, Net of Tax — — ( 1 ) ( 2 ) Total Comprehensive Income (Loss) 32 ( 1 ) 29 1 Less: Net Income Attributable to Noncontrolling Interest — — 2 4 Less: Foreign Currency Translation Attributable to Noncontrolling Interest — ( 1 ) ( 1 ) ( 1 ) Comprehensive Income (Loss) Attributable to Victoria's Secret & Co. $ 32 $ — $ 28 $ ( 2 ) The accompanying Notes are an integral part of these Consolidated Financial Statements. 3 Table of Contents VICTORIA'S SECRET & CO. CONSOLIDATED BALANCE SHEETS (in millions except par value amounts) August 3, 2024 February 3, 2024 July 29, 2023 (Unaudited) (Unaudited) ASSETS Current Assets: Cash and Cash Equival

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) 1. Description of Business, Basis of Presentation and Summary of Significant Accounting Policies Description of Business Victoria's Secret & Co. (together with its subsidiaries unless the context otherwise requires, the "Company") is a specialty retailer of women's intimate and other apparel and beauty products marketed under the Victoria's Secret, PINK and Adore Me brand names. The Company has more than 890 stores in the United States ("U.S."), Canada and China as well as its own websites, www.VictoriasSecret.com, www.PINK.com and www.AdoreMe.com, and other digital channels worldwide. Additionally, the Company has more than 480 stores in nearly 70 countries operating under franchise, license and wholesale arrangements. The Company also includes the merchandise sourcing and production function serving the Company and its international partners. The Company operates as a single segment designed to serve customers worldwide seamlessly through stores and digital channels. In the first quarter of 2023, the Company implemented restructuring actions to reorganize and improve its organizational structure. For additional information, see Note 4, "Restructuring Activities." Fiscal Year The Company's fiscal year ends on the Saturday nearest to January 31. As used herein, "second quarter of 2024" and "second quarter of 2023" refer to the thirteen-week periods ended August 3, 2024 and July 29, 2023, respectively. "Year-to-date 2024" and "year-to-date 2023" refer to the twenty-six-week periods ended August 3, 2024 and July 29, 2023, respectively, and "fiscal year 2024" and "fiscal year 2023" refer to the fifty-two-week period ending February 1, 2025 and the fifty-three-week period ended February 3, 2024, respectively. Basis of Presentation The Consolidated Financial Statements have been prepared in conformity with accounting principles generally accepted in the United States ("GAAP"). Interim Financial Statements

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