Victoria’s Secret & Co. stock fell more than 12% in the extended session Wednesday after the company reported second-quarter profits above Wall Street expectations, but joined several other retailers in calling for lower sales this year due to consumers spooked by inflation. Victoria’s Secret
said it earned $70 million, or 83 cents a share, in the quarter, compared with $151 million, or $1.71 a share, in the second quarter of 2021. Adjusted for one-time items, the company earned $1.09 a share.
Sales fell 6% to $1.52 billion, from $1.61 billion a year ago. Analysts polled by FactSet expected the retailer to report adjusted earnings of 95 cents a share on sales of $1.56 billion. “We expect customers will continue to be challenged by inflationary and other financial pressures for the balance of 2022, and we have adjusted our inventory position and cost structure accordingly while allowing for continued investment in growth initiatives,” Chief Executive Martin Waters said in a statement. Victoria’s Secret became a standalone company a year ago. “We are confident in our ability to navigate and execute in a shifting consumer landscape with our new, optimized leadership structure which allows for greater agility and focus on the customer and g …