On Tuesday, Victoria’s Secret posted a quarterly profit that was above Wall Street projections but cautioned that supply chain and sales issues might persist for the rest of the year. The lingerie shop, located in Ohio, said it encountered “supply chain challenges” in the three months ended April 30, while benefiting from the sales boost it received a year ago from individuals spending their government stimulus money.
“If the first quarter sales patterns adjusted for stimulus persist for the rest of the year, it may put our ability to produce full-year operating income in line with last year in jeopardy,” the business warned in a news statement. Sales were down 4.5% year over year but in line with Wall Street expectations. In the same period in 2021, government stimulus payments increased revenues by nearly $75 million.
The international Lingerie brand’s sales dropped 4.5 percent to $1.48 billion, compared to $1.55 billion a year ago, but were in line with Wall Street expectations. In the third quarter of 2021, same-store sales were down 8%. After accounting for the stimulus effect from last year, the business said that same-store sales were down 3%.