Victoria’s Secret recorded seven per cent increase in sales for the third quarter. This performance reflects growth in all core categories. The brand is working at transformation, deepening customer connections and improving operational fundamentals.
But 45 per cent of the inventory the company had ordered for Fall has been held up due to supply chain disruptions. In particular, 25 per cent of the retailer’s pajama sets are currently late, at a time of year when they are popular as gifts. The retailer has taken measures to lessen the negative effects of the hold-ups, canceling some orders and attempting to avoid shipping issues by pivoting towards air freight, which will be used to import some 90 per cent of Victoria’s Secret holiday inventory. Nonetheless, freight issues may cost the company a total of $150 million in the third and fourth quarters.
Currently, Victoria’s Secret expects its fourth quarter sales to be in the range of flat to up three per cent compared to the fourth quarter of 2020. The company spun off from L Brands earlier this year and achieved net sales of $1.44 billion in the second quarter. This compares to sales of $1.35 billion in the same period in the previous year.