VSCO - Earnings call 3 2024 | Victoria's Secret & Co.

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Operator

Good morning. My name is Ivy and I will be your conference operator today. At this time, I'd like to welcome everybody to Victoria's Secret & Company Third Quarter 2023 Earnings Conference Call. Please be advised that today's conference is being recorded. [Operator Instructions]

to call like to now would turn over the Mr. I Financial Vice Company. Investor President Wynk, Reporting of & Kevin Secret External and Victoria's Relations of you begin. Kevin, may

Kevin Wynk

to Thank Secret and Good you, welcome Ivy. & Co's. morning, Victoria's

Conference Earnings XX, Quarter period ending Call Third October XXXX. the for

of harbor matter like would our in filings statements forward-looking found I that are subject our to make and we in may formality, today you press to any a As remind statements our releases. safe SEC

CEO, Martin Joining and the me today is on Johnson. Tim Waters; call CFO,

We any today for to are up available to questions. minutes XX answer

call Certain and to are of our results we the the the measures are most Reconciliations filings website. of our discuss on of on Investors filings. section described SEC results the impact exclude comparable release, in GAAP certain these our items our in SEC today the investor included and measures and non-GAAP our press posted and release presentation press adjusted other

turn to And the Thanks. call I'll Martin. over now

Martin Waters

Thanks, everyone. Kevin, and good morning,

we our and Before the as dedication team's thankful commitment I and the share they're first all throughout around work hard gratitude to of appreciation for want and we and world. my move I'm for partners continued the holiday especially right doing forward the for associates dive in, season.

America, our the holiday, North Mariah speak you are by message which In our in with best about I November a sales improving start nearly swing years excitement believe fourth sales we is today, our strong energized giftable quarter. working performance Carey. performance holiday with customer assortment, is initiatives marketing in very stores experiences, full and our was margin November merchandise powerful to led in monthly with season response now to result and and evidence X and in the both to online,

Our international momentum. has great business

stores and growing Our in online. footprint is both

performing China. excited be are about we and very partners performance in Our well, continue to

new working into year teams on initiatives. the loyalty initiatives to tirelessly and on the consistently delivering season, designed Initiatives we have holiday multiple in fashion a business, enhance product about, have been our Victoria's merchandise create as show and brand PINK talked momentum the I strategy the key and to As program, such of beauty Secret new multi-tender our Victoria's and enter World half enhancements our improvements launches customer those accelerate we're as growth second with our of reimagined course, return of Tour. brand digital iconic the experience business, Secret XXXX for the and,

in our a year, October turning with range, of now strongest moment. Now and guidance for throughout month within our happily of month November, improve the being results We planned sales continued the third course. to quarter, to delivered the by quarter as trend Northern each exceeded the America

provide digital continues the globally by quarter, our and America, North across international our high franchise retail sales up stores with to driven with business partners. growth China and of Outside system-wide growth profitable teens in in

year, costs compared and in holiday was the and levels agility doing are into last new delivered Secret and last down X% at year. declined to the diligently sales managing into year, quarter teams PINK Victoria's of we our and controlling the margins, an at Our job X% which the inventory Overall, season to selling excellent guidance. midpoint have of heading

digital, and second in was and business. as average Conversion traffic. quarter, in size and year from trends compared sales improved basket In the our digital in channel last driven improvement by America, the in same it in sequential roughly to quarter also stores North both stores our improved in

VS&Co sales X percentage quarter the this of points were sales for growth Me and Adore again in about total up quarter. year-over-year represented

in America external perspective, intimate as quarter the the to North for compared indicates mid-single in market digits sales merchandising that year. last decreased market data a a From whole,

we bras both and Importantly, in panties. the for leader including share category, market Intimate the remain

stores slightly share digital up share down share with slightly. flat remained essentially Our and

From best-performing a starting our merchandise perspective, category our category. to with continues Victoria's Beauty Secret, business be

saw sleepwear improvement and and in in a Within bras PINK, Intimates trend quarter. significant also the apparel. panties, Sleepwear We outperformed

new results assortment and our that quarter. that believe on PINK the began to will We customers digital Our during some a reimagined of to X X to PINK path the business shoots acknowledge impacted third in estimate and apparel we're quarter delivering towards time around green it take challenges improvement stores turn apparel points. that definite sales recovery. We by the with negatively approximately

in XX actions support days, several of we've from for executed and financials, the the strategy positioning Aside our key brand over the term. long

now our program members perspective, weekly of more with XX the XX the new stores a over and product to XX we off arrivals apps. X% a of our or our XX fleet loyalty the and of North basis. releases message future impacting kicked in technology end the a We we sales drive our experience example, XX% on marketing featuring And season expanded than store powerful and America who launched million of For Mariah. be at by holiday has approximately overall stores From the the customer year. digital on fleet will approximately platforms new

million for decrease in year, and year full to in December. to the quarter. quarter from to $XXX last million compared sales overall compared X% forecasting fourth large million. we X% fourth last of income Looking quarter, come days November in our obviously, Cyber outlook adjusted the our expect to weeks to estimate to and X/X have forecasting be in expect income we range Monday, range in sales. for quarter And we're forward, to of sales We're operating through for have adjusted for to And and very million XXXX, of the operating Quarter-to-date, X% fourth range of an increase of the generated the $XXX roughly we X% we we results to the range the year. many to embeds $XXX $XXX the

Number two, which plans ignite core; key North time of the one, strategic transform in area growth; obviously Day Investor American the the our is of discussed our three, a spent particular, and At focus, for in October, accelerate we business. foundation on X approaches: lot our

of the committed the and our mind, our unlock the to significant health we're the remain our in in into start convert With influence business of energized financial and position positive season designed long-term to the holiday and long-term initiatives business to leadership by growth. signs market leverage opportunity cultural

be concludes and more remarks. you, time, that whatever happy Thank At you than might our questions this take to we'd prepared have.

Operator

first is Our coming Simeon question Instructions] Siegel. [Operator from

Simeon Siegel

Congrats on progress the quarter-to-date.

And seeing on congrats loyalty to versus multi-tender to impacts ongoing great learnings quick terms the the or the is see. what just really the revenue then that in is margin program? of Maybe changes in any growth success you're other program the just categories? you're Martin, the what in loyalty from So early on Beauty, you Can elaborate Beauty just seeing? speaking

Martin Waters

ability extra data of December on of as for most Not Simeon. we really of laying be that enables that the than you, million for it's customers, program XX% that much time our and bedrock and the of But us afraid, over marketing. you XXXX build. year. in personalize experiences match the The the upside future. to was which revenue. margin in rather our business. of question, It's question. sales give of thank us So will I'm I it's a program customers point. the is said, to this The our the aspect we're kind the loyalty, gives to this XX personalize it that important that data at And But data foundation about with for long can go the in TJ I'll now,

So we're have super launched it to and so well excited received.

will that come many It be customer in new the will XXXX. also basis for experiences

But will will from on be loyalty be other at the be acquisition, excited to program home. to The that being linked there that member Me first in leverage launch we'll the try Adore services XXXX.

margin the take to question? want you do TJ,

Timothy Johnson

Yes.

the think be Beauty on part, Simeon, to the tends the to I rate relative business company margin average. favorable second

think that is seeing to several expect go merchandise one why fourth third category note inflection the QX and quarter, believe point and an higher to into of margin of leading in rates the I for the contributors move a important it's through on as bit year-over-year. quarter It we store. was we a be Beauty us we to

about during the mind excited holiday We've we've season, business. accretive. big week everything got top for Friday based very Beauty the And plans customers. we're of on was Black margin the seen So with in Red

Martin Waters

[indiscernible] strength -- areas We say it's The might areas. in all also -- in business with I all that, in It's the in all forward. coming it's fragrances, across pulling really is T.J. agree Beauty

So that. about very pleased

Next please, Ivy? question,

Operator

the from Dana Next, of we'll line go Group. Telsey to Telsey

Dana Telsey

Nice the see progress. to

quarter the the I it and during some to think base update just As you on the on was future, progress in the you're how coming store stores about third the apparel, did of weekend? and And there, of relative seeing? perform the any of those the some newness, then PINK what even timing of think

Martin Waters

for Thanks Dana. the Yes. call,

As of for purpose about investor brand Secret. had we talked that the PINK our the year PINK we role some conference. and difficulties, a you we Victoria's know, challenges, the some identified had to business re-committed ago that the being on-ramp and And at

serving and and serving merchandise we're statements that in that the those adjustment require that not a we significant also market We both market were the of offering. clarified we're the X

that really in and chapters we've our run base focus hits that we'll merchandising [indiscernible] on, to the first the agenda. new identified X player, of We code, some the had good

Some blew and was fold some a tones green specifically gone Halloween put seen sold The flare a Chloe away. very just nudes, been basics, shoots of and in out the skin whimsical over the fun straight cotton of that and of end have in bras big is product been hit, we've has we pant in hit out and for by Halle out, bralettes, merchandise very the September. clear the and

right to very to It sense the make we're away. decided we a leadership assume we as as for team, direction. and buy fences swing didn't I know the PINK us recovery investor to me, said going So to the straight in conference, But at cautiously.

buys very spring chasing what's been working in into for we've our look and forward we to So cautious 'XX.

quarter, enormous helps. in to don't of So an to progress make recovery balance this XXXX. hope amount us expect into that expect continue of do I the

in the bit. from We PINK, little had away us progress also of reducing made a the got inventory which size in

out productivity choice higher smaller number counts. coming significantly a So of of

Store do of TJ, want the you take Future? the to

Timothy Johnson

remodels haven't of things quarterly Future Investor by necessarily Dana, lift. of the the I you we third through to That store broken Yes. trends we of double-digit the out, Store particularly actually and suggest the called quarter. performance. overall say, at a I'll would low that -- holding Future, as at just On Store Day building move we that around out getting is

XXXX for a good nice both from track would job teams perspective. I openings in And a store keeping new of done early remodels. So then terms very holiday take and store as the indicator us of that a have on

feel XX confident fleet the as very of of to the Future time get the about or quarter, the Store in So by stores, of Martin format. about new mentioned, the we'll we have XX% end the

if is the of So Store that also yes, from we Martin know, continue me for you as good the world grow to X a next Future has around international the well I'd as whispering to customers out our here, store I XXX international received plans point. we fleet. partners build to the didn't And mention International. our there. years upwards equally out year and stores the over be of have to X remiss been fleet

pointing So green on Future all and opportunity. of signs the performance Store

Operator

Morgan line Stanley. the to Alex of go from Straton we'll Next,

Alexandra Straton

Congrats you in promotional initiatives think of the function that's strategy wanted all Like category change on it it just do I'm acceleration factoring you how all? you're in. wondering aggregate? through? a the did seeing. that. of at the Is in flowing Is your focus improving? And to on just at I if

Martin Waters

the question. what ourselves repeat Thanks, we continuously. market I said a on tell size. -- Yes. on you Alex. of the Good question course, And I'll I'll ask

the to similar we at just for that in very So the quarter the saw a market QX. declined decline rate completed, we that

we for We've we've in long it categories held surprise anybody The brought receptivity into a who's it our the This see company to a We've We've decline. way to it And panties, newness, respond is our seen the beauty. seen that well in seen core and mid-single-digits business. time. newness PJs. that during bras. shouldn't be we've period. that in in we've in seen -- that that we followed to seen low- it So it We share to novelty. category seen

when the new single product that's get that consumer, do. So we the thing biggest we resonates can with

about promotionality. You asked

Our was it promotionality about same in the the as was quarter year-over-year.

strong performance you in tell were November, we had margins were will November that I product slightly slightly margins in and adjusted up that Our up a in November. our

been surgical very were preserving quite the think promotional, though more we have did of more good team managing And So really really I aggressively job and a targeted. the and moments to even we big appear margin.

seen digital position. enhancements We've also our helping

our our working North our total So business and now on XX% was American in with from is XX% system. of growth Rupp VS year. with PINK. that Many That's the been digital enhancements last of team. has It coming her Chris business

lots Me course, weighing performance lots plus, digital with Adore of of of enhancements, and help growth. X points So in great our to from that

store I I'd mall came traffic and strong also, traffic, if didn't that And particularly in was be where for store November, remiss us in. ahead mention traffic, of

the and team, to leadership help team. gel. XXXX. the leadership And that of we're there helps. people that board, most and planning momentum. we and Chris' I is making choices the feel are Greg's Under entire should importantly, across So are lots good starting say, that perhaps to coming and We the are things have for well the table, right like things leadership really at Hope together

Operator

we'll Boss from to line Matthew of Next, JPMorgan. go the

Matthew Boss

what relative category? the balance on would what technology America the today? to T.J., of update you health between Martin, line North think given your and maybe to about Maybe the then, top profitability elevated Intimates would initiatives just inning driving call be best marketing And So best assessment investments? how an your or the

Martin Waters

right. All

I I'll the think take first that's X. X questions.

we very saw about So we decline that surprised how We coming. feel that seen the hadn't I it's in that QX know. category category, do difficult in the by the were to

has good category times very stable been During long run. bad, the over Intimates and the

is a little bit talked Do QX that bras believing this that. structural less somehow less think see in to I've them structural then unusual, decline frequently, So are QX a market. in time high-single-digit a or and decline an replacing be and digits in women there I to have wearing the investor QX. about mid-single a and it's that we going often at that It's conference. hard

being wear less So around the those things sports not bras to definitely all definitely but trend bras lounge and fashion of see there some more constructed is to our none trend women threats bras towards of And there's more young business. a I as structural time. bras,

them market or with of we're in think in take whatever it to business. respond a accordingly, with advantage position whether sport I good are and to be rebirth the our of the bralettes to trends the

important I think that thing most just innovation category. drive is will the the

us And And do some whole. do category that new to we're old as the in largest the and to determined we're a the player in that the drive as by used to distance, days. it's the we in up to days, market

would rebuild the the What innings of in probably terms of we say. of in, health company the are company and mid-innings, I the overall,

We which in feel think foundational I in progress. good we've made good put way we've that business. the the in we about work transforming do place

initiatives. I about growth think our good very we feel

is are and them. business technology for from borrow the team them well. from working The we can Our and Me The bodes fantastic Adore international business leverage there fire. well on incredibly is incredibly

feel So really that. we good about

House the come the of so merchandising of us. to journey sense of customer. digital life this all on many only can a to the are to and at how initiatives and making beginning to personalization. the look and just Store up AI We're at how just difference that only Victoria new show new how there can we're dramatically make the the team how things only the We're can and can the beginning Future But just impact We've ahead way we market. look go to begun

more for lot So to us. there's a come

best think my my I assessment -- is mid-order. So probably

last to question? the take want TJ, do you

Timothy Johnson

Yes.

is early So perspective, terms of on some and to terms of third the think from think start innings line seeing think is our your perspective, I in say, Martin's innings quarter going, think, flow which as the I middle top comments, where that. against probably building is from benefits I'd of I identifying I the Matt, we're question of opportunities the P&L, in a through executing mentioned, them, he

initiatives them, number in seeing investing continue trend third inflection of track. throughout efforts in in and in point inflection merchandise that margin been the and on working some around in repositioning tells of terms into North in the the Seeing season, and us the business early on an we've rate. that we're an seeing holiday of and this year quarter on a America the of right I terms of growth brand the technology particularly So point think

I think been North will spring the has into build to challenge continue into build business quarter continue to season. America fourth the seeing and the and be

demonstrated hold been around we've cost a initiatives we've cost to the just have ability and Dein their fourth and new in think and Chris coming teams willingness I of on. that goods working got online and an here cost quarter

in feel in and business. like where we are inflection want we we North improvements So America start point I flow-through the terms as in to right be business to see seeing that the happen of

initiatives top So the to are flow for we've some the in and working of although them through just now P&L up been to on starting months. these in again, show starting line

Operator

Next, [ of America. from line Alex we'll Shaw to go the ] of Bank

Unknown Analyst

featherweight can the notable the reclaiming you quarter On there market? the strategic been bra Have did focus in versus in talk about Max? sports your the category What launches category, how since is the then most bra offering? sports in bra attractive bra lastly, core launch view, is pure launch a a differentiates just versus about like your VS your what your sports calendar? calendar compared And or other to

Martin Waters

we sport, need better me a This sport. just the subject table sore banging every because me from very question, to as hear team about the on is at with Thanks for the Alex. day be

and -- bra We in back share bra missteps sports the One had X.X% we in market. was beyond, XX% have back the the bra Victoria's in market. not of business a had we sports the share XXXX, participating of of XXXX, Today, 'XX the market. of sports

really in we're rebuild. And the to we've XX. top got So not

We color to change momentum that that into expansions, that new as it we be have top list, new as you next be January endeavor. got and the there to meaningful market. in The be and and forward the Max, is made pulling for that the is multipliers, first much sport The take multiyear can launch that mentioned, successful. was expand facing a of right -- will was we'll we that featherweight as and you that phase at very will year line the of very in

So honestly, But some in us more for to will newness takes year. January. coming be make later because in sport product. that's And it big a really good the of time just relaunch the

We're and best with looking we in leveraging not to win bralettes, tubes where vendors not sports with technology compete we unstructured by win, that's the the will with will world.

slightly, asked the that. at it that us good good be what you but be would So paraphrasing or we gives why question, I'm confidence we at can

when a particularly is on product. It's for. the excessive that's else are bras what movement We about Well, bras know technical planet. sports than anybody required. bras technical And more there's product

relationships have us with they'll best longer to technology, give have and We the best to and world. the first. better manufacturers the access in the They it

materials. to We best the have access raw

where our a best we You design we of it we capability, our in together put because history. be that done should we've category know it and the do all can with it's

I sense we're than it's broader through a for quickly. sport view the get and in court magic it'd of be after I opportunity but of newness long balance press newness. to more just term sports could XXXX, us, will a a rather with the to the for It of the sake taking rushing wave wand wish bras happen starting So full

bras hope click us not we'd to helps. sports full fingers I the but time answer because aggressive everybody strength wants probably to business. take and back our all see be in like some that's get that will quickly, So it in to that that

Operator

Boruchow go Fargo. to we'll Wells Next, Irwin from

Irwin Boruchow

Martin, or questions I guess X actually. TJ for

a are were improvement week we extra your out in digitally the you doubles. to to most digital singles, improve would work Is you both high why low business? down comps, roughly expect the stores and those one XQ. reason the when of the down would dormy, about the channel channels take the you the out let's comps When in-store, think or improve first, there Which guys and continue for as on a other? fastest Just outperform improving take

start TJ, those Day, question $XXX on there to this benefit second And COGS would you margin P&L? us about can year to flow Analyst the benefit as will into those talk timing can at have you start that to spoken at pertains then Do to next on next point, the it the that? of million you be the you anything Is the year? -- into cost savings? remind When those

Martin Waters

that first I'm You TJ and you. question came the take sounded the will to surprised second. the to happy take

as relates a of the we difference We of channels as it it to time. But there X let's and take digital. an is as strong emerging Historically, -- between So were about digital stores. in in thinking kind way channels it channels the old position and early. more very X the all got fashion are there

However, identified the Other class or things X X in this team had up. developed world took experiences. we not We capabilities catch one management other when people that to years, digital And us. is ahead of were didn't were over, first in of we have. we digital the people over last that further

but you the of in are most entrants, know, new to competition come new has of loads last aren't Also, there that digital, digital years X store as entrants. many the market there is

the the arena. has digital been focus So for us in

our For substandard and those and was X reasons, offering stronger underweight. competition

landing linking kind things pages, the So And the of clicks don't those in is sorts had quarter. that's the in been of products, digital we're barcode And removing I video, stuff that's getting some during search, text, personalization, that of of enhanced All releases third we capability, capabilities. noncrawlable new stuff focus AI-powered XX we've visual shoppable into. scanning, that that biggest get like area channel. things building know, been adding to to category fewer our using

in really And I share increased starting as remarks, pace. work. during And accelerating So prepared mentioned in slightly our the to the it's quarter. digital just

of I that, So to -- the maybe the overall, period, at X-year accelerate digital. category move where we certainly to gain the in XX% digital with will expect is in to XX% over we from expect industry forecast now market, that it is faster, X- think keep a to terms least share experts' forecast about pace in

me address a an kind we Let than of stores. area Stores We overweight. that where store had is anybody do. feel we still better were experience

come we've of lost best So that see business, focus to leads That's in a no share? little a we're of away bit into how Behringer I an stores. a should area the significant be why who we and surprise inch we Becky share reason leaning structural to It's be. of us. can it that give possibly for

anybody fast fleet renovating stores. as We're in market. adding a we else store new that in have better the XXX fleet We possibly like as can. Crave, We're than technology now

will we So expecting share in that us, I'm them. of each both are to and important gain channels

you to other do TJ, want take the question?

Timothy Johnson

majority on with a be the Day the that and agree of goods. both of Martin's channels. $XXX goods Ike, comment it. foundation put that transform did goal XXXX. That over that million Investor cost the combination at cost Absolutely. period XXXX, out different would I was And we X-year XXXX, of to expense comments the We referring of you're

XXXX, did or X/X. a X/X As it relates little say less to about we than

that mention of the to benefits where then and would We start X did when And the is which XXXX. first of through quarters the So we of quarter, expensed fourth the year. up, majority benefit we that think show in now, the as I be get is would particularly that to that's million are of sold cost happening. goods $XX

delivering from a quarter a forecast. target as different of perspective, enhancers So the are in couple line, time on one teams was fourth our on dollars that and expected, of

third as through we a point of inflection margin of reasons and this, the goods continue XXXX, transformative the will believe why will standpoint one at again, fourth be large benefit XXXX. and majority the the on foundation cost of move into we quarter So into from

about period. on We we're over as So good Feel through X-year about how $XXX cadencing track. feel good million P&L the it's expected. a

Operator

Serna to Next, of from Mauricio line the we'll go UBS.

Mauricio Serna Vega

if PINK and was what I wanted you this And X%. to talk points guess could understand about quarter, previous quarter quarter? was to apparel, X drag on on the the the brand in Me underlying the X% to I sales growth X just sales first, think Adore the then in percentage was

was that? just want And at the to SG&A behind I in I will for on understand look I driver just front, think SG&A XQ. be very if So it what dollars lastly, the then mid-teens up XQ, I implies think the guidance

compared dollar quarter like elevated to I the -- And So is and first year. that SG&A seems was just I -- but growth? to half show, what the know growth want third that rate to the of the in fashion the was what understand in embedded

Martin Waters

then can quick if TJ, take mind. third, very be can the on And the X. you you first We wouldn't Yes.

team out We're seeing say for very We're and way. profitability. level So of to a not size. year-over-year. intelligent Suffice business growth of and we're specificity that seeing business the underlying the We're in that Adore smart of are running the sales that Me. not pulling growth giving Morgan

had the about We very If week. seeing this smart are and conversation We're we'll we I investment -- in a then make Morgan if earlier marketing. won't. it's investment is this the makes there, ROAS not, If it. sense,

about that the from very team team, in them. capability and enormous feel we that good management So have and learn we amount can an I that

breaking but business. for specificity out super not that about Me, So Adore any excited

significant not year It really and is business ago. to extent between We've but cause QX drag, the been a relates material place. isn't way, a PINK either identified that The of QX. material. there was and steps strong the There's difference As it decay apparel a point it's putting in maybe for in concern. a

recovery The with seen come main As can really shoots more we've that focused on. we earlier, start XXXX when I to aggressive be said will green we're buys. some in our

TJ, SG&A? on

Timothy Johnson

Yes. On is X factors. fourth or combination SG&A, quarter Mauricio, the growth different of year-over-year X in a probably the

in not our in one first the think numbers is was in obvious Me year, our that I Adore numbers is last year. this

that the flow year. of think expense is quarter have through extra both compared also this an clear second week that pretty selling the and to last fourth one I we year

showing year, enhanced Next, ongoing the technology, are trend which and investments in also continuing up an efforts. in of the completing That's digital separation capabilities activity.

closer would of this in and and improvements next third last believe the at expectations. year-over-year. up the be fourth to in trend expense year incentive in item think levels, do Again, early in it based quarter. year performing compensation budgets I quarter the lower that be on business our will We note, internal

X X those biggest and fourth smaller the year. items down or would nature are going then third items, some be between quarter or Mauricio, probably other So next or in into timing below and

feel very core comfortable that operations standpoint. we from an of business So the expense the

we year operate how year. into distribution costs, stores, and feel those good I operate So how disciplines managing next very headcount throughout about and we our this centers, we we're how as head

Operator

to go of we'll from the line Jonna TD Kim Next, Cowen.

Unknown Analyst

is Katie for This Jonna. on

and season, assortment in is versus category. strength? the Beauty over be how And What drivers promos And that time? newness you do see on just category? on Just category you to much PINK and that first is larger what And is think do into the question of how will then holiday that there? you my believe the related Victoria's fitting Secret second driving do brands strength key

Martin Waters

you this of holiday particular Christmas, knows, the is days which everybody and Thanksgiving season. we're about because XX between don't in question. number for the It's I longest the the know interesting period year in drivers calendar are a but has really days. what Thank Great if question key

it's to newness both. It kind the is it's long of you have X the some Is truth a balance And multiple tell So stories. thing I or bad that a mentioned, think gives the and thing. a some between thing? opportunity promotions, of good a season. good really It's each. of us things we of

when want Generally speaking, people they something want go before. tried PJs. but for are they've to they PJs, not tested different, something new want categories different seen like They looking PJs. and gifts, They

at good a established or that's done category be, the store fabrication giving the so and and in carefully that's feel about -- early well night very positioned, or to the adjusting have. seeing that's we've think category we And I very feel those very in that a giftable that newness was place reaction, bring and have assortment maybe last new different, strength we're something and about we in strong an assortments categories. good and I to fit design is gift we to customer seen skillfully what represents looking

The second part is times tough. that are

when value We of kind And a conditions more economic environment. people those for are do in lean into money. exist, difficult

competing the apparel, fight, people kind is at so to category. in for speak, jeans, players. important not against against and different in just other all being beauty, to we're of competing And the us, -- We're against sorts against our so ring the against of

newness innovation the promotions. So storytelling And hard while between and tell December. value money, our hitting goal of it now to of equally is we its stories should here and mix those get for well balance both during

Beauty been of question big Secret has the a Beauty. about part Your always Victoria's business.

We're a has close a very business have very lingerie. Beauty. $X in it. over genuinely -- It good We really fragrance at has adjacency close to billion

the to the fragrance strong. Bombshells, had team North extensions -- the line Really, #X we've terrific. to extensions category, particularly newness in have the that bring seasonal in We [indiscernible]. of America. continue Bombshell line really the in have selling extent And The been

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brands the against competes right this. Victoria's the brand there the and for world. X, Secret the the in we're Victoria's brands put his When in X, X are that responsible the world, team best we department against know and up into top Beauty Beauty Secret put When stores we worldwide in we Arun brands. And best

that. So we in do, team and Beauty aferthought isn't that's it's for any absolutely an of to what the very I'm way proud central us, leading

Okay, next Ivy? question,

Operator

Next, Research Janet we'll to the of go from line JJK Associates. Kloppenburg

Janet Kloppenburg

to 'XX? tougher think then right PINK they the apparel And you're if versus you of through in the you pushing And some up? there? And pressure earlier have maybe Day you think had PINK because now 'XX now, -- wondering challenges just in to if December in if you're where wondering still and because on Congrats green later calling shoots I are I the progress. seen merchandising Day out your churn promotions at in light, opposed you're too that moderate a some were in if Analyst was the as you working Investor picking levels or if of to think Martin. was or constraint inventory apparel, I'm that's if comps that's but for I that you'll or comparisons encouraged right that [indiscernible] the

Martin Waters

part. TJ, from and to Good the Janet. you. the then I'll maybe you, second Thank take second take I'll of some hear to ask you part,

In kind lull Friday terms early a and the to very strong of unusual not see the our it's part and to things after Monday a of December down. plan of during Black Cyber for year, slow a

historical at look patterns, we that As we've before. seen

being opportunity for about in see But So what optimistic there's overly that. we're we December. not equally,

to TJ probably all tell that's feel you about in I So outlook add December, minute. can free the for a

yes. and we out It's to relates and And we Are XXX% both we product? stuff are, put what blew We best through be? any we assortment the are. best observations the are that out working we mean, inventory should right. really get Yes. constrained it quickly, It's not more. your PINK, on I As The we X on Yes, had right. can't still better. wish more. yes

way the As proud significantly the show more assortment, up I now. look feel I at we of

consumer. Gen the to Z relevant more it's think I

we opportunity after to it with go to see is I and that for aligned significant but think get it, the still it. that and areas are responsible completely, need it's on for team a better we're there's fit Victoria, where that all

is making all improvement. I the don't we're to our think that continuous be we late through line pushing 'XX, time back expectation should 'XX,

things time, in take are you Other like spring. worked the into Some lead know, relatively time, as of the businesses bit short have lead may actually quickly expect longer. longer items, well that be to a so those panties,

we've work that It's decision a aggressively pleased that of with no-regrets it's the for too buy on season. full the kind progress. and in made. progress I'm So a we didn't full go

think I have a mistake. been that would

and -- live your we you learn. thank for encouragement. So And

December? to TJ, anything else add on

Timothy Johnson

absolutely, Janet. Yes,

America, December So after that we do year-over-year. North will November be expect positive in a slightly down

Cyber mentioned, longer And break. come typically, and of takes this customer period year. between off of Christmas a and the Monday a a Martin have we bit we Thanksgiving As do

back So as we do come the customer in we abundance expect to get Christmas. closer to

prudent from it's our a So that in think we with accordingly perspective, to planning mind. set expectations

I happy our if bit what, helps also we'll stronger will back be than high, lower little then think you that. think know at very the additionally, with a and of off and setting comes in sooner customer level we're the we sales us operational expense that flow-through plans very and just and December, be

move maybe sale have very well with month the think quarter that is some of what and opportunities be January less what will Janet, the you do have a the VS promotional in January also to down digits. inventory is semiannual of the because to not expectations to And sales. is last such down have additionally, that, in is to a be little also business think of into semiannual our I guidance in part as We seeing have up might coming profitable large PINK we part month happens levels units high-single semiannual in of a sale and us year. be and sets many and

impact So line. on have that does top the an

business very be a the of that and position balance robust in things positioned think the high, that's more to So good flow-through than that we quarter would the as we've be and I very for diligently if in. feel set the are the event our expectations

Martin Waters

The expecting our to other opportunity clean is said, forward have, are spring be TJ we're Janet, to as pull inventories -- our that fashion. we inventories

January price with pull which can forward full ways actively we're So that selling. looking we at in newness period to help

Kevin, one we time think we? have more, I do for

Kevin Wynk

Ivy, you, one I Thank And please. go think with let's question Janet. more Yes.

Operator

And Shapiro question Retail from Marni final our Tracker. comes from

Marni Shapiro

Congrats pleasure I stores, in online to was Friday, have it having to on to get Black a say. wait on

And bumps, they sort of went. curiously, they was of speed You their to the see effect? Victoria's baby the up I millennials Z et end all, sell-through the so guess, were Did them, be you a was is less was quarter It about bump you have Secret. made from talk Secret grew were around would that where third cetera. some big the up, could hitting Netflix, the I see with But a It it. Did in you Gen Victoria's was growing just call little curious brand. all. PINK bit I'm events? if their moments, traffic way marketing as expecting? you those halo put lot in investments show, a

PINK under Z that? of starting the do now talk If So to I'm vehicle the Gen you're over that is just and to curious win marketing. could guise if about now you

Martin Waters

marketing the September we and Yes. during particularly QX Great tour. for and questions, world you of Marni asking. of did thank -- a Look, resetting with in the lot and agenda October October

we've Our conversation assets marketing mission be of conversation looks objectives the previously; Investor on popular at we then Mariah a were which a followed of to over media My that My kind of Day, quickly Wings, the articulation. We use world what tour, consistent -- that. all part able different frenzy, been assets accomplished; said where And very and of campaign, a that like outside to culture with were: big could then Way was of time. as moment do that And now, a with I we out moment. period create create thirdly, of popped the

of the so brand. lot And Victoria's a attention to

want on Did sentiment, we're see over at like key relevance, of measure like independent in and or positive The good around And bad is more for have to to whether those look which will the time halo about marketing about series And just of -- more a performance lift XXXX. to marketing like in about other see how did there me, really are The we looking And moving much to lift decision about you and pole a moment now reveal purchase, are investments sentiment, than in been we're take about deciding that gets I is traffic? intent we focused those what and we in there's which brand at channels. for those. metric promotional a ways look moments whole track is traffic all is the we metrics at we're the digital in of do in arena term. investments sitting point you at themselves. the social on where tent brand time spoke we that the a brand we're good. and XX% more the grow research about the We long

world the actively about make in we're will and So about weeks thinking anniversary tour coming in the some XXXX, that and moment choices for the what be we'll months.

You say with Zs. that over-indexing Zs asked to we're about and Gen Gen I'm delighted millennials.

The like under-indexing with we're So Zs. we've about. we're Victoria's Secret, Gen PINK. spoken Gen that reasons Zs strong with

The differently by not with I'm we Zs young just marketing capability just PINK and but Millennials brings opportunity enable on of at continue confident game, get strong. Gen that will get look even super back its hard when has more to to very also Millennials, for behavior. So been by Gen area come personalized in opportunity been that underweight we'll to where and we've us that And we market cohort. us our psychographic generation, Ys

want identified marking Day, to customers differently and their preferences. be we we'll at to target we've them And Investor talked about specific on we as depending that

happy and Thank a holidays. brands. very I that think call wrap Wish all thank that in you question, you Marni. for for all your a interest we'll our you

Operator

We time, Thank third concludes day. of rest XXXX quarter earnings and your at That you all disconnect the conference. participating call. for enjoy in today's today's this

Victoria's Secret & Co. (VSCO) 30 Nov 232024 Q3 Earnings call transcript