Shares of Victoria’s Secret & Co. VSCO, -2.08% fell after hours on Thursday after the lingerie-maker gave downbeat forecasts for the months ahead, saying “the environment will likely remain challenging for the foreseeable future.” Victoria’s Secret said it expected first-quarter sales to fall in the “mid-single digit range,” worse than the roughly 1% dip forecast by FactSet. It said it expected first-quarter adjusted earnings per share of 30 to 60 cents, compared to FactSet forecasts for 84 cents. For the full year, the company saw sales rising in the “mid-single digit range,” compared with FactSet forecasts for a 3% gain. Shares fell 2% after hours. Victoria’s Secret reported as clothing retailers cut prices to attract shoppers more worried about being able to afford more expensive basic necessities. The company reported fourth-quarter net income of $172 million, or $2.10 a share, compared with $246 million, or $2.70 a share, in the fourth quarter of 2021. Revenue fell 7% to $2.02 billion, compared with $2.18 billion in the prior-year quarter. Adjusted for costs related to the recent acquisition of intimates brand Adore Me and other expenses, Victoria’s Secret earned $2.47 a share. Analysts polled by FactSet forecast adjusted earnings per share of $2.34, on revenue of $2.01 billion.
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