Victoria's Secret & Co Q1 2024 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Simeon Siegel - BMO Capital Markets - Analyst : Thank you, everyone. Morning. I hope you're all doing well. Martin, you mentioned the fashion show returning. How are you thinking about marketing this year? Maybe speak to the work you did to come to this decision? Any change is signaling a shift in the marketing imagery messaging? Just anything you could speak to that -- and then just a more nuance. Did the April strength comment include PINK as well? Any thoughts how you're thinking about the progress of the stabilization of a turnaround of PINK. Thanks. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JUNE 06, 2024 / 12:00PM, VSCO.N - Q1 2024 Victoria's Secret & Co Earnings Call

Question: Simeon Siegel - BMO Capital Markets - Analyst : That's great. Thanks, guys. Best luck for the rest of year.

Question: Dana Telsey - Telsey Advisory Group - Analyst : Hi, good morning, everyone. As you think about the swim category, how did the swim category perform? Where are you on the trajectory? And obviously, you've had some new product launches to like the reintegration of Body by Victoria, what did you see in intimates and panties? And then Store of the Future, how did that perform versus the base? Thank you.

Question: Lorraine Hutchinson - BofA Global Research - Analyst : Thanks. Good morning. TJ, I wanted to ask about the SG&A outperformance in the first quarter. And if these cost savings are something that we can count on as we start to model growth for the rest of the year?

Question: Lorraine Hutchinson - BofA Global Research - Analyst : Thank you. And then if I could just follow up on the fashion show. As you think about the cost of that versus the cost of the world tour last year, is it similar in magnitude? Or would we see an increase or decrease in that third quarter marketing expense?

Question: Lorraine Hutchinson - BofA Global Research - Analyst : Thank you. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JUNE 06, 2024 / 12:00PM, VSCO.N - Q1 2024 Victoria's Secret & Co Earnings Call

Question: Brooke Roach - Goldman Sachs - Analyst : Good morning, and thank you for taking our question. Can you speak to the level of customer engagement you're seeing in response to promotions relative to the full price assortment? And as you do get these customer driving traffic initiatives, are they beginning to cross shop the rest of the store?

Question: Brooke Roach - Goldman Sachs - Analyst : Great. Thank you. And then one other question for you. Can you talk to the customer reaction to the marketing campaigns behind the sport business that you executed this quarter? How does that inform your plans for support in the back half of the year?

Question: Brooke Roach - Goldman Sachs - Analyst : Great. Thank you so much. I'll pass the line.

Question: Ike Boruchow - Wells Fargo Securities, LLC - Analyst : Hey, morning, everyone. I just wanted to understand a little bit more the promotional environment is TJ, can you just talk about the intensity you're seeing? And I'm really most interested in what's embedded in your fan both for the second quarter and remainder of the year. Are you planning to pull back on promo at any time? Is that baked into your guide? Or again, just trying to try to understand how you're kind of level setting right? Thank you.

Question: Ike Boruchow - Wells Fargo Securities, LLC - Analyst : Thank you.

Question: Lauren Slade - Evercore ISI - Analyst : Hey, good morning. Thanks for taking my question here. I was wondering if you can give a little bit of a deeper diagnostic on why the international business is outperforming so significantly here, especially in China. I know there's some key structural differences. Is this something structural? Or are there lessons that you could learn from and apply to the US?

Question: Lauren Slade - Evercore ISI - Analyst : Thanks, Martin. That's really useful color. And then as my follow-up, you talked a little bit in the prepared remarks about utilizing the new customer data you're getting from the multi-tender loyalty rollout. What's in the hopper there in terms of how we may see leverage those insights?

Question: Lauren Slade - Evercore ISI - Analyst : Thanks, Martin. Good luck.

Question: Jonna Kim - TD Cowen - Analyst : Thank you for taking my question. It was nice to see (technical difficulty). So what's your expectation for the remainder for that particular business? And also would love to get any update on the Adore Me business, how that's tracking versus your expectations? Thank you so much.

Question: Jonna Kim - TD Cowen - Analyst : Yeah. Just on PINK business, you've seen improvement there. What's your expectation for the remainder of the year? How that business will evolve?

Question: Jonna Kim - TD Cowen - Analyst : It's the PINK business, PINK.

Question: Jonna Kim - TD Cowen - Analyst : Thank you so much.

Question: Alex Straton - Morgan Stanley - Analyst : Perfect. Thanks so much for taking the question. Maybe one for Martin and one for TJ. So Martin, you noted some intimates market improvement in North America. Any sense for what enabled that trend change and then the magnitude? I'm wondering if it impacts your view from here? And then, TJ, just pretty upbeat on the digital result, though I did notice the sales declined year-over-year after growing throughout last year. So can you help me just understand the change in trend there? Thanks so much.

Question: Marni Shapiro - The Retail Tracker - Analyst : Hey, guys, congratulations. Honestly, PINK is notably different. And I loved your comment about off color because I think the colors now look significantly better. I'm curious if you could just talk a little bit more about PINK though. Are you seeing the lapse shopper come in? Are you bringing in a new shopper there? And I'm curious how you feel about -- I know the apparel inventory has been a big part of the conversation there. How do you feel about the level and the balance of apparel versus intimates at PINK? And how should we think about where that balance is in the back half of the year?