Victoria’s Secret reported a net loss of US$71 million for the third quarter of this year compared to a net income of $24 million in the corresponding prior-year period.

The company’s net sales were down 4 per cent year on year to $1.265 billion, while comparable sales dropped 7 per cent.

“The November sales and margin result was our best monthly performance in nearly two years and further evidence our initiatives are working,” said Martin Waters, CEO of Victoria’s Secret.

“Inasmuch as the pace of decline is now moderating, the sales numbers from Victoria’s Secret do not look too terrible,” said Neil Saunders, MD of GlobalData. “…While the company’s results fell within the guidance range, we believe any talk of a recovery is very premature.”

Store sales plummeted 11 per cent off the back of an 11.7 per cent decline last year. Digital sales rose by 11.9 per cent, making up some of the ground from last year’s 15.9 per cent slip and benefitted by the inclusion of revenue from the acquired Adore Me brand.

The company continues to lose both shoppers and share of wallet as it struggles with its brand image and place in the market, Saunders continued. 

“If anything, the numbers for intimates are much worse than the headlines suggest because the beauty part of Victoria’s Secret’s business remains in growth. This lack of clarity in the offer and marketing is decidedly unhelpful in a market where consumers are already a little constrained.”

The company expects better performance in the fourth quarter, with net sales anticipated to rise between 2 and 4 per cent. However, full-year sales are forecast to drop 2-3 per cent.

“Victoria’s Secret tends to do better for gifting over the holidays and it is lapping some more soft prior year numbers. It is also selling on Amazon and is pushing the successful Adore Me brand more heavily.

“These things should help the company lift sales slightly, but they won’t put it completely back on track,” Saunders remarked.