Victoria’s Secret & Co. shares are trading lower after the company reported first-quarter FY24 results.

Revenue fell 3.4% Y/Y to $1.36 billion, which is in line with the consensus. Total comparable sales for the quarter decreased 5% Y/Y in the quarter.

Operating income stood at $26 million, which declined from $28 million a year ago. Adjusted EPS of $0.12 beat the consensus of $0.09.

Chief Executive Officer Martin Waters said, “We experienced sequential improvement in quarterly sales trends in North America in both our stores and digital business for both the Victoria’s Secret and PINK brands.”

“The retail environment in North America was challenging and the promotional environment was very competitive, but importantly our gross margin rate in the quarter was above last year as we managed our inventory and were disciplined with traffic-driving offerings for our customers. In stores, our customer traffic improved noticeably throughout the quarter.”

“With some caution around the broader retail environment in North America, we are planning the business appropriately conservative in the near-term, but are encouraged by the start to May and the second quarter.”

Related: Victoria’s Secret Surprises with Preliminary Q1 Results: CEO Bullish Amid Tough Retail Climate

Outlook: For the second quarter, Victoria’s Secret expects net sales to decrease in the low-single-digit range Y/Y, adjusted operating income of $30 million to $45 million, and adjusted EPS of $0.05 to $0.20 (vs. $0.08 estimate).

The company reaffirmed its full-year outlook and is forecasting the 52-week fiscal year 2024 net sales to be about $6.0 billion, or down low-single digits compared to a comparative 52-weeks (vs. consensus of $5.99 billion).

Investors can gain exposure to the stock via SPDR S&P Retail ETF ( XRT ) .

Price Action: VSCO shares are down 2.92% at $21.95 premarket at the last check Thursday.