US lingerie brand Victoria’s Secret & Co has released a preliminary report detailing its performance for the first quarter of 2025, along with an announcement regarding a delay in its financial results due to a recent “security incident” affecting its IT systems.
The company has confirmed that this incident did not impact its financial performance for the quarter. However, the restoration process has restricted employee access to certain systems and information required to finalize the financial results for the period ending May 3.
As a result, Victoria’s Secret has also decided to postpone its previously scheduled earnings call webcast for the quarter. A new date for this event will be communicated in the future.
The full scope and implications of the security incident are still being assessed by the company, with oversight from the Audit Committee of the Board of Directors.
Net sales are anticipated to be around $1.35 billion, an increase from the previous guidance range of $1.30 billion to $1.33 billion.
The projected adjusted operating income for Q1 FY25 is set at $32 million, a rise compared to the earlier estimate range of $10 million to $30 million. Adjusted net income (loss) per diluted share is also estimated at $0.09.
Update on the “security incident”
On May 24, the company detected unauthorized access within its network. In response, Victoria’s Secret promptly activated its emergency protocols to manage and mitigate the breach, including enlisting third-party experts for support.
To enhance the security of its operations, the company temporarily suspended activities on its corporate systems and online store on May 26. The e-commerce site was successfully restored by May 29, and efforts are ongoing to fully reinstate the functionality of corporate systems.
The disruption had a limited impact on some operations within Victoria’s Secret and PINK retail locations, most of which have since been resolved.
“Although this incident has not caused a material disruption to its operations to date, the Company has incurred, and may continue to incur, expenses and other financial impacts related to this incident, which could negatively affect its future financial results, including for the second quarter of fiscal 2025,” stated Victoria’s Secret.
In March, the company reported that its operating income and earnings per share (EPS) exceeded expectations for the fourth quarter of 2024, noting a 5% increase in total comparable sales.
