Victoria's Secret returns to black in 2021, sale surge 25%
U.S. lingerie giant Victoria's Secret announced the company returned to black for the full year 2021, following a 25% uptick in annual sales and solid fourth-quarter revenue growth.
The Reynoldsburg, Ohio company said net sales for the year totalled $6.785 billion, compared to $5.413 billion in 2020. Comparable sales saw a 3% uptick.
The company swung back to black for the full year 2021, reporting a net income of $646.4 million, or diluted earnings per share of $7.18, compared to a net loss of $72.3 million, or loss per share of $0.82, in 2020.
“2021 was a milestone year for our company, our first as a public company," said Martin Waters, CEO of Victoria's Secret.
"I am pleased that we delivered on our major objectives and I would like to thank all of our associates, supplier partners, board of directors, and shareholders for your support. We are keenly aware 2022 will present continued challenges for retailers in this inflationary environment. However, we have a very resilient, dedicated team and strategy prepared to meet these challenges head-on by focusing on the customer journey, being ‘best at bras’, prioritizing people and planet, and launching new initiatives for future growth."
In the fourth quarter, Victoria's Secret sales totalled $2.175 billion, an increase of 4%, a figure slightly above the previous guidance of sales in the range of flat to up 3%. Total comparable sales for the fourth quarter were up 1% compared to the fourth quarter of 2020.
Quarterly net income, however, fell to $246.1 million, or diluted earnings per share of $2.70, compared to net income of $282.4 million, or earnings per share of $3.20. Despite the earnings dip, the company said it was "pleased" with the fourth quarter result, "in a challenging retail environment."
"Our associates across the globe focused on execution and delivered upon all of our financial expectations while continuing to transform our brand, enhance our customer experience, and strengthen our dominant merchandise positioning in the intimates category," added Waters.
Coinciding with the earnings update, Victoria's Secret announced the approval a new share repurchase program, providing for the repurchase of up to $250 million of the company’s common stock. The $250 million authorization is expected to be utilized to repurchase shares in the open market, subject to market conditions and other factors, the company added.
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