Victorias Secret & Co. · NYSE:VSCO
Victorias Secret & — Q4 2022 Earnings Presentation
15 slides from Victorias Secret &'s earnings presentation, Mar 2, 2023
Slide 1: Fourth Quarter Earnings
Fourth Quarter Earnings March 2, 2023
Slide 2: Forward Looking Statements
Forward Looking Statements • Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995 • our ability to realize the potential benefits and synergies sought with the acquisition of AdoreMe, Inc. (“Adore Me”); • We caution that any forward-looking statements (as such term is def
Slide 3: Adjusted Consolidated and Combined Statements of Income, Thirteen Weeks
VICTORIA'S SECRET & CO. 1 ADJUSTED CONSOLIDATED AND COMBINED STATEMENTS OF INCOME THIRTEEN WEEKS ENDED JANUARY 28, 2023 AND JANUARY 29, 2022 (Unaudited) (In millions except per share amounts) % Increase Increase 2022 2021 (Decrease) (Decrease) Net Sales $ 2,021.2 $ 2,175.4 $ (154.2) -7% Comparable S
Slide 4: Adjusted Consolidated and Combined Statements of Income, Fifty-Two Weeks
VICTORIA'S SECRET & CO. 1 ADJUSTED CONSOLIDATED AND COMBINED STATEMENTS OF INCOME FIFTY-TWO WEEKS ENDED JANUARY 28, 2023 AND JANUARY 29, 2022 (Unaudited) (In millions except per share amounts) % Increase Increase 2022 2021 (Decrease) (Decrease) Net Sales $ 6,344.3 $ 6,784.6 $ (440.3) -6% Comparable
Slide 5: Consolidated Balance Sheets
VICTORIA'S SECRET & CO. CONSOLIDATED BALANCE SHEETS (Unaudited) (In thousands) January 28, 2023 January 29, 2022 ASSETS Current Assets Cash and Cash Equivalents $ 426,801 $ 489,783 Accounts Receivable, Net 141,053 162,388 Inventories 1,052,100 948,750 Other 117,261 89,736 Total Current Assets 1,737,
Slide 6: 2023 Outlook as of March 2, 2023
VICTORIA'S SECRET & CO. 2023 Outlook as of March 2, 2023 First Quarter Full Year Net Sales Decrease mid-single digits compared to $1.484 Increase mid-single digits compared to $6.344 billion billion in 2022 in 2022 Adjusted Gross Margin Rate Approximately 37% to 38%, up from 2022 rate of 36.6% - Adj
Slide 7: Store Count and Selling Sq Ft 2022 Actuals
VICTORIA'S SECRET & CO. STORE COUNT AND SELLING SQ FT 2022 Actuals Reclassed to Joint Total Reconstructions Increase / (Decrease) Beginning of Year New Stores Closures Acquired End of Year Venture and Change in SSF Excludes Reclassed to Joint Venture Company-Operated U.S. Store Count 808 16 (12) - -
Slide 8: Store Count and Selling Sq Ft 2023 Forecast
VICTORIA'S SECRET & CO. STORE COUNT AND SELLING SQ FT 2023 Forecast Total Reconstructions Beginning of Year New Stores Closures End of Year Increase / (Decrease) and Change in SSF Company-Operated U.S. Store Count 812 15 to 20 (13 to 18) 48 809 to 819 (3) to 7 0% to 1% Selling Sq Ft 000's 5,617 66 t
Slide 9: Appendix
APPENDIX VS&Co
Slide 10: Consolidated Statements of Income, Thirteen Weeks
VICTORIA'S SECRET & CO. CONSOLIDATED STATEMENTS OF INCOME THIRTEEN WEEKS ENDED JANUARY 28, 2023 AND JANUARY 29, 2022 (Unaudited) (In thousands except per share amounts) 2022 2021 Net Sales $ 2,021,206 $ 2,175,432 Costs of Goods Sold, Buying and Occupancy (1,276,938) (1,322,187) Gross Profit 744,268
Slide 11: Consolidated and Combined Statements of Income, Fifty-Two Weeks
VICTORIA'S SECRET & CO. CONSOLIDATED AND COMBINED STATEMENTS OF INCOME FIFTY-TWO WEEKS ENDED JANUARY 28, 2023 AND JANUARY 29, 2022 (Unaudited) (In thousands except per share amounts) 2022 2021 Net Sales $ 6,344,298 $ 6,784,633 Costs of Goods Sold, Buying and Occupancy (4,085,901) (4,024,595) Gross P
Slide 12: Selected Data: Capital Expenditures and Depreciation & Amortization
SELECTED DATA FIFTY-TWO WEEKS ENDED JANUARY 28, 2023 AND JANUARY 29, 2022 (Unaudited, in thousands) Capital Expenditures 2022 2021 First Quarter $ 21,181 $ 19,303 Second Quarter 37,058 46,714 Spring Season $ 58,239 $ 66,017 Third Quarter 67,052 50,574 Fourth Quarter 38,636 52,195 Year $ 163,927 $ 16
Slide 13: Non-GAAP Financial Information
VICTORIA'S SECRET & CO. NON-GAAP FINANCIAL INFORMATION (Unaudited) In addition to our results provided in accordance with U.S. generally accepted accounting principles (“GAAP”), this presentation includes non-GAAP financial measures such as free cash flow and presents gross profit, general, administ
Slide 14: Non-GAAP Financial Information
VICTORIA'S SECRET & CO. NON-GAAP FINANCIAL INFORMATION (Unaudited) (In thousands except per share amounts) Fourth Quarter Year-to-Date 2022 2021 2022 2021 Reconciliation of Reported to Adjusted Gross Profit Reported Gross Profit - GAAP $ 744,268 $ 853,245 $ 2,258,397 $ 2,760,038 % Net Sales 36.8% 39
Slide 15: Non-GAAP Financial Information
VICTORIA'S SECRET & CO. NON-GAAP FINANCIAL INFORMATION (Unaudited) 2022 adjusted results exclude the following items: (a) In the first quarter of 2022, we recognized a $21.7 million pre-tax charge ($16.2 million net of tax of $5.5 million), included in buying and occupancy expense, related to a lega