Shares of Victoria's Secret & Co. declined 7.4% to $35.53 in after-hours trading on Wednesday after the retailer known for lingerie lowered its full-year outlook following a drop in second-quarter profit.
Consumers spent less on Victoria's Secret's products in the recent quarter because of inflationary pressures, which Chief Executive Martin Waters expects will continue through the remainder of the year. The retailer changed its guidance for sales to decline for the year in the high single-digit range.
The Reynoldsburg, Ohio-based company said net income was cut by more than half in its second quarter to $69.9 million, or 83 cents per share. A consensus of analysts polled by FactSet were looking for 95 cents per share.
Revenue fell below expectations to $1.52 billion, and total comparable sales declined 8% on slower traffic patterns.