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

Revenue fell 1% Y/Y to $1.417 billion, beating the consensus of $1.41 billion. Total comparable sales for the quarter decreased 3%.

Adjusted operating income stood at $62 million vs. $49 million a year ago.  Adjusted EPS of $0.40 beat the consensus of $0.36, slightly above the recently reported preliminary adjusted EPS of $0.34 – $0.39.

Interim Chief Executive Officer and Chief Financial and Administrative Officer Timothy (TJ) Johnson said, “Our financial results for the second quarter came in at the high end of expectations and we delivered year-over-year quarterly operating income growth for the first time since 2021.”

“We are encouraged our North America business trends have continued to improve as we’ve moved through August and the start of the third quarter. Early customer feedback on our fall assortments is encouraging for both the Victoria’s Secret and PINK brands, and our beauty business has continued solid performance and is driving traffic to our stores.”

Outlook: For the third quarter, Victoria’s Secret expects net sales to increase in low-single digits Y/Y and adjusted loss per share of $0.60 – $0.80 vs. $0.66 loss estimate.

The company revised its full-year outlook for net sales to decrease by about 1%, an improvement from the prior guidance of a decline in low-single digits.

This month, the company appointed Hillary Super as Chief Executive Officer, effective September 9. Investors can gain exposure to the stock via SPDR S&P Retail ETF ( XRT ) .

Price Action: VSCO shares are down 8% at $22.88 at the last check Thursday.

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