Retailers issue first reports as separate companies

Victoria’s Secret, Bath & Body Works go in opposite directions

Victoria’s Secret and Bath & Body Works issued their first financial reports as separate public companies Wednesday afternoon with forecasts that sent shares of both companies heading in opposite directions.

In the case of Victoria’s Secret, shares were off nearly 5% in trading Thursday afternoon. Its forecast of sales of $1.35 billion and profit of 60 to 70 cents per share for the current quarter came in well below Wall Street forecasts.

Shares of Bath & Body Works, meanwhile, moved nearly 8% higher when it issued a profit forecast of 55 cents to 60 cents per share, topping analysts’ expectations of 53 cents per share for the quarter.

In their final quarter together under the L Brands umbrella, the retailers reported record secondquarter results.

Sales totaled $3.3 billion for the three months that ended July 31, up 43% from the same period in 2020 when stores were closed for about half the quarter because of the coronavirus. Sales were up 14% from the same period in 2019.

Profit totaled $374.2 million, or $1.34 per share, compared with a loss of $49.6 million, or 18 cents per share, in the same period of 2020. The year ago period also included a one-time charge of 42 cents per share.

Victoria’s Secret and Bath & Body Works officially split into separate public companies on Aug. 3, after the second quarter closed.

Bath & Body Works reported sales of $1.7 billion for the quarter, 36% higher than the year-ago quarter and 54% from the same quarter in 2019.

Victoria’s Secret reported sales of $1.6 billion for the quarter, up 51% from the same period in 2020. Sales at stores open at least a year, considered a key indicator of a retailer’s strength, increased 5% from 2019 levels.

“Following the finalization of the spinoff from L Brands, our momentum continues, fueled by strong fundamentals: inspiring merchandise she loves, our new brand positioning and disciplined business operations,” Martin Waters, the CEO of Victoria’s Secret, said in a statement.

“We wish the Victoria’s Secret business and associates well as they embark on their journey as a public company,” Andrew Meslow, CEO of Bath & Body Works, said in a statement. “As we look to the remainder of the year, we will continue to focus on executing our long-term growth strategy as a standalone business and driving value for shareholders.” mawilliams@dispatch.com @Bizmarkwilliams

COURTESY VICTORIA’S SECRET Victoria’s Secret is rebuilding its identity as an inclusive brand for all women, epitomized by the exit of its longtime Angels and the launch of the VS Collective campaign.

COLUMBUS DISPATCH BARBARA J. PERENIC/ Bath & Body Works is performing beyond analysts’ expectations in its first weeks as a standalone public company.