Victoria’s Secret Appoints New CFO Amid Positive Sales Forecast
Chief Financial and Administrative Officer Timothy Johnson announces planned retirement
Seasoned retail executive Scott Sekella appointed CFO
Company now forecasts sales and earnings near the high end of expectations
Victoria’s Secret & Co. (“VS&Co” or the “Company”) (NYSE: VSCO) has made an important announcement regarding its leadership as Chief Financial and Administrative Officer Timothy (TJ) Johnson is set to retire by mid-2025. In his place, Scott Sekella has been named the new Chief Financial Officer.
CEO Hillary Super expressed enthusiasm for Scott's appointment, stating, “We are excited to welcome Scott to VS&Co. He is a transformational leader with extensive and diverse retail experience delivering results, driving operational efficiencies, and executing growth strategies.” Scott boasts a notable history in the retail sector, having previously served as CFO at Joann and held financial leadership roles at companies such as Under Armour and Crocs.
During this transition, Johnson has expressed appreciation for his partnership with the team and committed to ensuring a seamless handover by remaining with the business until June.
Positive Fourth Quarter Financial Outlook
In tandem with the CFO transition announcement, VS&Co shared its updated financial guidance for the fourth quarter of 2024. The Company is forecasting that its net sales, adjusted operating income, and adjusted diluted earnings per share will likely reach the upper tier of previously given guidance.
Recent trends indicate a 3% to 4% increase in net sales, revised from an earlier projection of 2% to 4%. The adjusted operating income is expected to range between $260 million and $270 million, representing a positive adjustment from earlier estimates. Additionally, the adjusted diluted earnings per share forecast stands at $2.20 to $2.30.
Super highlighted the company's holiday season performance, mentioning significant progress in sales momentum that continued from the third quarter through the holiday months. Both brick-and-mortar stores and online channels excelled, contributing to a favorable outlook for the quarter. Super noted, “We experienced increased traffic in our stores and on our digital platforms, which reflects our improved product offerings.”
The Company is optimistic about continuing this momentum moving into Valentine's Day and the first quarter, supported by a solid inventory position and a positive reception to new product lines.
About Victoria’s Secret & Co.
Victoria’s Secret & Co. (NYSE: VSCO) is recognized as a leading specialty retailer, delivering modern, fashion-inspired collections that include signature bras, panties, lingerie, sleepwear, athleisure, swimwear, and prestigious fragrances. The Company is powered by its flagship brand, Victoria’s Secret, and its youthful counterpart, Victoria’s Secret PINK. It also has expanded into the digital space with Adore Me, which caters to diverse body types and budgets.
With over 30,000 associates across more than 1,380 retail locations in nearly 70 countries, VS&Co is committed to empowering women and supporting their journeys. The Company actively seeks to celebrate and embrace the diversity of women’s experiences and perspectives.
Frequently Asked Questions
Who is the new CFO of Victoria’s Secret & Co.?
The new CFO is Scott Sekella, who has extensive retail leadership experience.
What are the updated financial expectations for the fourth quarter?
The Company expects a net sales increase of 3% to 4%, with adjusted operating income of $260 million to $270 million.
Why is Timothy Johnson retiring?
Timothy Johnson is retiring to facilitate a transition to new leadership while ensuring a smooth handover of responsibilities.
How did the Company perform over the holiday season?
Victoria’s Secret experienced positive sales momentum and increased traffic, contributing to an improved outlook for the fourth quarter.
What is the significance of Scott Sekella’s appointment?
Scott Sekella's appointment is expected to guide Victoria’s Secret towards further growth and enhance operational efficiency based on his retail expertise.
