The company confirms that this incident did not affect its financial performance for the quarter. However, the process of restoration has hindered employee access to certain systems and information necessary for releasing the financial results for the quarter ending 3 May.
Consequently, Victoria’s Secret said it is also postponing its previously scheduled earnings call webcast for the quarter. A new date for these events will be announced in due course.
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The full extent and repercussions of the security incident are still under evaluation by the company, with oversight from the Audit Committee of the Board of Directors.
According to early figures, the company anticipates that net sales, adjusted operating income, and adjusted earnings per share (EPS) will likely meet or surpass the upper limits of the forecasted ranges provided earlier.
Net sales are expected to be approximately $1.35bn, an uptick from the prior guidance range of $1.30bn to $1.33bn.
Adjusted operating income is projected to be at $32m for Q1 FY25, compared to the earlier range of $10m to $30m. Adjusted net income (loss) per diluted share is also set at $0.09.
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By GlobalDataUpdate on “security incident”
On 24 May, the company identified unauthorised access within its network. In response, Victoria’s Secret promptly initiated its emergency procedures to manage and neutralise the breach, including bringing in third-party experts for assistance.
To further safeguard its operations, the company chose to temporarily suspend activity on its corporate systems and online store on 26 May. The e-commerce site was successfully reinstated by 29 May, and efforts are ongoing to fully re-establish corporate system functionality.
Additionally, the disruption had a limited effect on certain operations within Victoria’s Secret and PINK retail locations, most of which have since been resolved.
“Although this incident has not caused a material disruption to its operations to date, the Company has incurred, and may continue to incur, expenses and other financial impacts related to this incident, which could negatively impact its future financial results, including for the second quarter of fiscal 2025,” a statement from Victoria’s Secret read.
The company reported in March that operating income and earnings per share (EPS) surpassed expectations in the fourth quarter 2024, with a 5% increase in total comparable sales.
