Latest news with #PINK
Vancouver Sun
10-07-2025
- Business
- Vancouver Sun
Droplet Home Goods born from a quest for the perfect baby towel
What happens when a new mom can't find a bath towel worthy enough for her newborn baby's soft skin? For one Vancouver-based entrepreneur, the disappointment she felt with the towels and shawls after the birth of her first child led to the creation of luxury textiles brand Droplet Home Goods . We caught up with founder and owner Aleeza Khan Bradner to find out more. Q: For anyone not familiar with the brand, what is Droplet Home Goods? Stay on top of the latest real estate news and home design trends. By signing up you consent to receive the above newsletter from Postmedia Network Inc. A welcome email is on its way. If you don't see it, please check your junk folder. The next issue of Westcoast Homes will soon be in your inbox. Please try again Interested in more newsletters? Browse here. Droplet is about feeling good. It's about everyday coziness. It's about caring what you use in your home and your life, for you and your loved ones. And it's about bringing joy to those everyday moments. We are a Canadian, BIPOC woman owned home goods brand, known for our plush soft towels and cosy blankets. We've been around for over six years and have partnered with Goop, Jillian Harris and The August Diaries. Q: How has the brand evolved since 2019? While we try to keep the product line intentionally small and neutral, we've expanded as needs and creativity have allowed. We were born from motherhood and the journey that took me on, and have now evolved to give space to my love of textiles. To me, they hold history, emotion, and evoke memories. What started as wanting a clean, organic towel to wrap my son in has taken me on a journey of discovery — textiles have always brought me joy and comfort. Q: What sets it apart? We keep the product line small and intentional. We care deeply about where our goods come from, a clean and fair supply chain, and ensuring we give you the best product possible. I run Droplet solo while juggling the joys of motherhood and entrepreneurship and give my all to them both. Q: What can you share about new products to come? We have a really exciting new, limited edition product that just dropped! We've partnered with the amazing and hilarious Breanne Allarie on a fun, cosy and unique PINK robe — super soft, with a secret embroidered daily mantra on the inside — perfect for lounging around, and kitchen dance parties of course. Q: Is there a customer favourite, and why does it resonate? It's always the original blanket. Honestly you can't go wrong with it and it's never been returned. It's super soft and gets softer as you wash it, it's big enough to share but lightweight enough to keep it to yourself and not get stuffy, and it's available in two neutral colours to go in any home. I have the original sample in my home from seven years ago and it's still perfect. Q: What is the price range? There's a huge range — from our $20 wash cloths and $65 Turkish towels, all the way up to our $189 blankets and towel sets that start from $165. Q: Where can people find your products? On our website , and we're also available in a selection of curated stores.
Business Wire
27-06-2025
- Business
- Business Wire
Capstone Green Energy Announces Financial Results for Fourth Quarter and Full Fiscal Year 2025
LOS ANGELES--(BUSINESS WIRE)-- Capstone Green Energy Holdings, Inc. (the "Company' or 'Capstone') (PINK: CGEH), the public successor to Capstone Green Energy Corporation, announced its financial results for the fourth quarter and full fiscal year ended March 31, 2025. The Company continues to focus on driving its Three Pillar strategy: (1) financial health, (2) sustainable excellence, and (3) revitalizing culture and talent. These Three Pillars are intended to drive behavioral changes in our culture, generating results that lead to strong and sustainable financial performance. The continued execution of our corporate initiatives focused on financial and commercial discipline were essential to the improved financial performance and the discipline has become embedded in our culture Share Revenue for the fourth quarter and year-to-date fiscal year 2025 were $27.1 million and $85.6 million, compared to the fourth quarter and year-to-date revenues in the fiscal year 2024 of $24.3 million and $91.2 million, respectively. The fourth-quarter revenue improved by $2.8 million year-over-year, driven by increased demand for products and services, as well as improved rental utilization rates within the company's Energy as a Service (EaaS) revenue stream. Slow product sales in the first half of the fiscal year caused a decrease of $5.7 million for the year. This was mainly due to restructuring hesitancy and instability in Europe. Fourth Quarter Fiscal 2025 Highlights: Gross profit for the fourth quarter of 2025 was $7.5 million, which was $4.9 million higher than the fourth quarter of fiscal 2024. Further, gross margin was 28%, which was a 17% improvement over the fourth quarter of fiscal 2024. The $4.9 million gross profit increase was driven by higher product and rental pricing, higher rental fleet utilization, cost efficiencies, and improving productivity from operations. Gross margin improvement was primarily driven by product price increases implemented during fiscal 2025, along with stronger financial and business discipline across the rentals, service agreements, and parts categories. The Company delivered a net loss of $0.1 million for the fourth quarter of fiscal 2025 compared to a net loss of $5.3 million for the fourth quarter of fiscal 2024. Adjusted EBITDA for the fourth quarter of fiscal 2025 was $2.8 million versus negative $0.8 million for the fourth quarter of fiscal 2024, improving $3.6 million primarily due to improved gross margin and lower operating expenses reflecting the financial and business discipline actions taken during the year. Total cash as of March 31, 2025, was $8.7 million, an increase of $6.6 million from March 31, 2024. Year-to-Date Fiscal 2025 Highlights: Gross Profit for fiscal year 2025 was $23.3 million with a margin of 27% compared to gross profit of $14.3 million and a margin of 16% for fiscal year 2024. The increase of $9.0 million over fiscal 2024 resulted from a shift in sales mix and the effect of price increases implemented during fiscal year 2025. Product and accessories sales, as a percentage of total revenue, declined to 47% in fiscal 2025 from 54% in fiscal 2024. As stated earlier, this was mainly due to the lingering effects of restructuring activities completed in fiscal 2024 and weaker European sales. Net loss was $7.2 million for fiscal year 2025, compared to a net income of $7.4 million for fiscal year 2024, which included net reorganization gain of $32.5 million. Excluding the reorganization gain, the net loss improved by $17.9 million, driven by improved gross profit, lower total operating expenses, lower restatement and restructuring costs, and lower interest costs. Adjusted EBITDA for fiscal year 2025 improved significantly to $7.9 million from negative $0.5 million for fiscal year 2024. Adjusted EBITDA included significant addbacks for restructuring, shareholder litigation, restatement costs, and SEC investigation costs. These non-recurring matters have come to conclusion in the first quarter of fiscal 2026. Net cash provided by operating activities was $7.7 million for the twelve months ended March 31, 2025. This positive change was mainly a result of the reduced net loss and improved working capital. The Company continues to remain compliant with its financial covenants. 'The Company has taken great strides over the past year. We are pleased with the Company's fourth-quarter results for fiscal 2025, which reflect the improvements in our services and rental business revenues, and lower costs of goods sold driven by our cost-out initiatives. Additionally, the impact of the fiscal 2025 strategic price increases across the portfolio improved margins. The Company's full year results reflect the focus on financial health with $9.0 million increase in gross profit and $7.9 million of positive Adjusted EBITDA in fiscal 2025. The continued execution of our corporate initiatives focused on financial and commercial discipline were essential to the improved financial performance and the discipline has become embedded in our culture,' said John Juric, Chief Financial Officer of Capstone. 'Now as we move into fiscal year 2026, we are working to elevate the positioning of the Company's stock to the OTC:QX market, while continuing to focus on our longer-term goal of relisting on Nasdaq or a similar national exchange.' Mr. Juric further commented, 'The previously disclosed SEC investigation has been closed with no action taken by the SEC. The Company is pleased with the outcome of the investigation and can now focus on the strategic growth of the business.' 'What we have accomplished in fiscal Year 2025 was historic for Capstone. In all of its 37-year history, the Company has never delivered a positive Adjusted EBITDA over a full fiscal year. We have changed the culture and truly changed the landscape of what Capstone's true potential is,' said Vince Canino, President & Chief Executive Officer of Capstone. 'Our steady improvements in financial health, operational excellence, and the revitalization of our culture and talent have strengthened our focus on core values. With strong market tailwinds and a demonstrated path to profitability, we believe we are well-positioned to take the business to new heights.' Earnings Conference Call Webcast The Company will hold its Fourth Quarter & Full Fiscal Year 2025 financial results conference call and webcast on Wednesday, July 2 at 10:00 am Pacific Time. Participant (Listen Only) Dial-In Numbers: Domestic Callers: (888) 506-0062 International Callers: (973) 528-0011 Participant Access Code: 182930 Access By Webcast The call will be simultaneously webcast over the Internet via the ' Investor Relations ' section of Capstone's website or by using this direct link: At the end of the webcast, management will answer questions that have been submitted by the audience. A webcast replay of the call will be archived on the Company's website for 90 days. About Capstone Green Energy For almost four decades, Capstone Green Energy has been at the forefront of clean technology using microturbines, revolutionizing how businesses manage their energy supply on a sustainable basis. In partnership with our worldwide team of dedicated distributors, we have shipped over 10,600 units to 88 countries, lowering our clients' carbon footprint with highly efficient on-site energy systems and microgrid solutions. Today, our commitment to a cleaner future is unwavering. We offer customers a range of microturbine products ranging from 65 kilowatts to multiple megawatts for commercial, industrial, and utility-scale spaces uniquely tailored to their specific needs. Capstone's solutions portfolio not only showcases our core clean technology microturbines but also includes flexible Energy-as-a-Service (EaaS) offerings, including build, own, and operate models, as well as rental services. Capstone's fast, turnkey power rental solutions are intended to address customers with limited capital or short-term needs; for more information, contact rentals@ In our pursuit of cutting-edge solutions, we've forged strategic partnerships to extend our impact. Through these collaborations, we proudly offer solutions that utilize renewable gas products and heat recovery solutions. These solutions greatly enhance the sustainability and efficiency of our clients' operations while contributing to a cleaner and more responsible sustainable energy landscape. For more information about the Company, please visit Follow Capstone Green Energy on Twitter, LinkedIn, Instagram, Facebook, and YouTube. Cautionary Notes This release contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995, including statements related to future profitability and the growth of the business. The Company has tried to identify these forward-looking statements by using words such as 'expect,' 'anticipate,' 'believe,' 'could,' 'should,' 'estimate,' 'intend,' 'may,' 'will,' 'plan,' 'goal' and similar terms and phrases, but such words, terms and phrases are not the exclusive means of identifying such statements. Actual results, performance and achievements could differ materially from those expressed in, or implied by, these forward-looking statements due to a variety of risks, uncertainties and other factors, including, but not limited to, the following: the Company's liquidity position and ability to access capital; the Company's ability to continue as a going concern; the Company's ability to successfully remediate the material weakness in internal control over financial reporting; the Company's ability to realize the anticipated benefits of its financial restructuring; the Company's ability to comply with the restrictions imposed by covenants contained in the exit financing and the new subsidiary limited liability company agreement; the uncertainty associated with the imposition of tariffs and trade barriers and changes in trade policies; employee attrition and the Company's ability to retain senior management and other key personnel following the restructuring; the Company's ability to develop new products and enhance existing products; product quality issues, including the adequacy of reserves therefor and warranty cost exposure; intense competition; financial performance of the oil and natural gas industry and other general business, industry and economic conditions; including the impacts of any changes in tariff policies; the impact of litigation and regulatory proceedings; the potential material adverse effect on the price of the Company's common stock and stockholder lawsuits. For a detailed discussion of factors that could affect the Company's future operating results, please see the Company's filings with the Securities and Exchange Commission, including the risk factors contained in our most recent Annual Report on Form 10-K. Except as expressly required by the federal securities laws, the Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, changed circumstances or future events or for any other reason. (In thousands, except share amounts) March 31, Assets 2025 2024 Current Assets: Cash $ 8,671 $ 2,085 Accounts receivable, net of allowances of $607 at March 31,2025 and $3,287 at March 31,2024 7,037 6,552 Inventories 16,615 20,642 Lease receivable, current 113 — Prepaid expenses and other current assets 3,653 5,449 Total current assets 36,089 34,728 Property, plant, equipment and rental assets, net 19,362 25,854 Finance lease right-of-use assets 3,787 4,391 Operating lease right-of-use assets 8,282 12,279 Non-current portion of inventories 3,464 3,917 Lease receivable, non-current 1,175 — Other assets 2,705 3,037 Total assets $ 74,864 $ 84,206 Liabilities, Temporary Equity and Stockholders' Deficiency Current Liabilities: Accounts payable $ 14,092 $ 15,094 Accrued expenses 3,113 3,118 Accrued salaries and wages 1,172 1,220 Accrued warranty reserve 1,070 1,437 Deferred revenue 13,351 11,183 Finance lease liability, current 2,017 964 Operating lease liability, current 3,539 4,041 Factory protection plan liability 6,256 7,259 Exit new money notes, net of discount, current 7,968 28,911 Total current liabilities 52,578 73,227 Deferred revenue, non-current 598 675 Finance lease liability, non-current 248 2,300 Operating lease liability, non-current 4,988 8,527 Exit new money notes, net of discount, non-current 24,213 — Other non-current liabilities — 264 Total liabilities 82,625 84,993 Commitments and contingencies Temporary equity: Redeemable noncontrolling interests 13,859 13,859 Stockholders' deficiency: Preferred stock, $.001 par value; 1,000,000 shares authorized; none issued — — Common stock, $.001 par value; 59,400,000 shares authorized, 18,643,587 shares issued and outstanding at March 31, 2025; 59,400,000 shares authorized, 18,540,789 shares issued and outstanding at March 31, 2024 18 18 Non-voting common stock, $.001 par value; 600,000 shares authorized, 508,475 shares issued and outstanding at March 31, 2025 and March 31, 2024 1 1 Additional paid-in capital 955,407 955,145 Accumulated deficit (977,000 ) (969,810 ) Treasury stock, at cost; 57,202 shares at March 31, 2025 and 0 shares at March 31, 2024 (46 ) — Total stockholders' deficiency (21,620 ) (14,646 ) Total liabilities, temporary equity and stockholders' deficiency $ 74,864 $ 84,206 Expand CAPSTONE GREEN ENERGY HOLDINGS, INC. AND SUBSIDIARIES (In thousands, except per share data) (Audited Twelve Months) Three Months Ended March 31, Twelve Months Ended March 31, 2025 2024 2025 2024 Revenue, net: Product and accessories $ 15,316 $ 15,643 $ 40,219 $ 49,107 Parts and service 7,711 6,775 30,939 30,681 Rentals 4,024 1,930 14,406 11,431 Total revenue, net 27,051 24,348 85,564 91,219 Cost of goods sold: Product and accessories 13,578 15,222 39,200 51,259 Parts and service 3,533 4,147 13,660 16,460 Rentals 2,432 2,405 9,406 9,216 Total cost of goods sold 19,543 21,774 62,266 76,935 Gross profit 7,508 2,574 23,298 14,284 Operating expenses: Research and development 785 566 2,667 2,463 Selling, general and administrative 6,709 6,462 26,205 32,175 Total operating expenses 7,494 7,028 28,872 34,638 Loss from operations 14 (4,454 ) (5,574 ) (20,354 ) Other income 740 615 2,317 674 Interest income 180 4 186 110 Interest expense (941 ) (910 ) (3,944 ) (5,529 ) Reorganization items, net — (537 ) — 32,505 Income (loss) before provision for income taxes (7 ) (5,282 ) (7,015 ) 7,406 Provision for income taxes 119 — 175 14 Net income (loss) (126 ) (5,282 ) (7,190 ) 7,392 Net income (loss) per share of common stock and non-voting common stock—basic and diluted $ (0.01 ) $ (0.28 ) $ (0.38 ) $ 0.39 Weighted average shares used to calculate basic and diluted net income (loss) per common stock and non-voting common stock 19,075 19,049 19,056 18,753 Expand CAPSTONE GREEN ENERGY HOLDINGS, INC. AND SUBSIDIARIES (In thousands) Year Ended March 31, 2025 2024 Cash Flows from Operating Activities: Net income (loss) $ (7,190 ) $ 7,392 Adjustments to reconcile net income (loss) to net cash used in operating activities: Depreciation and amortization 3,858 3,988 Amortization of financing costs and discounts 71 53 Paid-in-kind interest expense 3,199 1,957 Non-cash lease expense 3,996 3,431 Provision for credit loss expense 823 439 Inventory write-down 900 779 Provision for warranty expenses (184 ) 32 Loss on disposal of equipment 67 — Stock-based compensation 262 2,057 Non-cash reorganization items, net — (35,255 ) Changes in operating assets and liabilities: Accounts receivable (2,083 ) (571 ) Inventories 7,628 15,382 Lease receivable (1,288 ) — Prepaid expenses, other current assets and other assets 2,128 871 Accounts payable (1,002 ) (12,337 ) Accrued expenses (268 ) 3,583 Operating lease liability, net (4,041 ) (3,413 ) Accrued salaries and wages and long-term liabilities (94 ) 15 Accrued warranty reserve (183 ) (171 ) Deferred revenue 2,092 (12,305 ) Factory protection plan liability (1,003 ) (3,585 ) Net cash provided (used) in operating activities 7,688 (27,658 ) Cash Flows from Investing Activities: Expenditures for property, plant, equipment and rental assets (879 ) (4,674 ) Net cash used in investing activities (879 ) (4,674 ) Cash Flows from Financing Activities: Proceeds from debtors-in-process facility — 12,000 Proceeds from three-year term note — 3,000 Proceeds from exit new money note — 7,000 Debt issuance costs — (244 ) Repayment of finance lease obligations (223 ) (178 ) Net cash provided (used) by financing activities (223 ) 21,578 Net increase (decrease) in Cash 6,586 (10,754 ) Cash, Beginning of Period 2,085 12,839 Cash, End of Period $ 8,671 $ 2,085 Supplemental Disclosures of Cash Flow Information: Cash paid during the period for: Interest $ 533 $ 1,620 Income taxes $ 126 $ 14 Supplemental Disclosures of Non-Cash Information: Renewal of insurance contracts financed by notes payable $ — $ 648 Right-of-use assets obtained in exchange for lease obligations $ — $ 7,348 Settlement of lease obligations with accounts receivable due $ 775 $ 502 Conversion of inventory to rental assets $ — $ 280 Rental assets transferred to inventory $ 3,067 $ — Sales-type lease $ 981 $ — Conversion of prepaid expenses to rental assets $ — $ 623 Paid-in-kind debt discount in connection with the three-year term note $ — $ 500 Acquisition of treasury stock by incurring a liability $ 46 $ — Expand CAPSTONE GREEN ENERGY HOLDINGS, INC. AND SUBSIDIARIES (In thousands, except per share data) (Unaudited) Three Months Ended March 31, Twelve Months Ended March 31, 2025 2024 2025 2024 Net Income (Loss) $ (126 ) $ (5,282 ) $ (7,190 ) $ 7,392 Interest Expense 941 910 3,944 5,529 Provision for income taxes 119 — 175 14 Depreciation 835 987 3,858 3,988 EBITDA $ 1,769 $ (3,385 ) $ 787 $ 16,923 Stock-based compensation 94 — 263 2,057 Restructuring Expense 468 114 2,077 1,344 Financing Expense — 107 58 5,821 Shareholder litigation — — 1,023 — Extraordinary Legal Costs 436 93 1,125 104 Restatement & SEC Investigation Costs 62 1,762 2,591 5,758 Extraordinary Gain/Loss — — — (35,343 ) Reorganization Items — 537 — 2,838 Adjusted EBITDA $ 2,829 $ (772 ) $ 7,924 $ (498 ) Expand To supplement the Company's unaudited financial data presented on a generally accepted accounting principles (GAAP) basis, management has presented Adjusted EBITDA, a non-GAAP financial measure. This non-GAAP financial measure is among the indicators management uses as a basis for evaluating the Company's financial performance as well as for forecasting future periods. Management establishes performance targets, annual budgets and makes operating decisions based in part upon this metric. Accordingly, disclosure of this non-GAAP financial measure provides investors with the same information that management uses to understand the company's economic performance year-over-year. EBITDA is defined as net income (loss) before interest, provision for income taxes and depreciation and amortization expense. Adjusted EBITDA is defined as EBITDA before stock-based compensation, restructuring, financing, shareholder litigation, non-recurring legal, restatement and SEC investigation expenses, and reorganization items. Restructuring expenses relate to the Chapter 11 bankruptcy filing and financing expenses related to the evaluation and negotiation of the Company's senior indebtedness. Shareholder litigation expense resulted from the restatement of the Company's financials and non-recurring legal expenses are one-time non-recurring legal fees. Restatement expenses are professional fees related to the restatement of the Company's prior year financials. SEC investigation expenses relate to the costs arising from the restatement of the Company's financials. Reorganization items represent adjustments occurring during the bankruptcy period. Adjusted EBITDA is not a measure of the Company's liquidity or financial performance under GAAP and should not be considered as an alternative to net income or any other performance measure derived in accordance with GAAP, or as an alternative to cash flows from operating activities as a measure of its liquidity. While management believes that the Company's presentation of Adjusted EBITDA provides useful supplemental information to investors, there are limitations associated with the use of this non-GAAP financial measure. Adjusted EBITDA is not prepared in accordance with GAAP and may not be directly comparable to similarly titled measures of other companies due to potential differences in the methods of calculation. The Company's non-GAAP financial measure is not meant to be considered in isolation or as a substitute for comparable GAAP financial measures and should be read only in conjunction with the Company's consolidated financial statements prepared in accordance with GAAP.
Yahoo
23-06-2025
- Business
- Yahoo
TD Cowen Cuts Victoria's Secret Target to $22, Says Core Business Still Lags
TD Cowen lowered its price target on Victoria's Secret (NYSE:VSCO) from $25 to $22 a few days earlier, holding its Neutral stance as the lingerie retailer continues to struggle with margin pressure and weak core category performance. The stock is currently trading near $19, down more than 52% year-to-date, with a market cap of $1.58 billion. The downgrade follows a rough first quarter, where gross margins came in below expectations. While the company benefited from lower SG&A, thanks to a shift in marketing spend from Q1 into Q2, Cowen pointed to the growing reliance on 'gift with purchase' promotions, which undercut pricing and dragged on margins. Unit sales during the semiannual sale also saw double-digit declines, raising further questions about consumer demand. Still, there were a few positives. The PINK apparel line, beauty segment, and VSX activewear all delivered solid results. But analysts made it clear that the company's core intimates business, the foundation of the brand, 'needs more work.' TD Cowen also warned that the second half of the year could bring difficult comps, particularly given the major lift Victoria's Secret (NYSE:VSCO) saw from its fashion show last year. The updated $22 price target is based on a 9x multiple of projected 2027 earnings. It suggests marginal near-term upside without a turnaround in fundamentals. The company remains profitable, with $586 million in EBITDA over the past 12 months, but momentum is shaky, and the stock continues to show that uncertainty. Last month we talked about . While we acknowledge the potential of VSCO as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None. Sign in to access your portfolio
Yahoo
12-06-2025
- Business
- Yahoo
Victoria's Secret exceeds Q1 FY25 expectations
US-based fashion and beauty retailer Victoria's Secret has seen its sales and operating income in the first quarter (Q1) of 2025 surpassing expectations and reiterated its full-year sales forecast. The company posted net sales of $1.35bn, which aligns with the upper end of the company's guidance range and remained flat year-on-year (YoY). Despite this steady performance, the company experienced a 1% decline in total comparable sales during the same period. The retailer reported an operating income of $20m for Q1 2025, a decrease from the $26m reported in Q1 of the previous year. Victoria's Secret also posted a net loss of $2m - an improvement compared to its net loss of $4m in Q1 2024. Despite the cyber incident that took place in May, Victoria's Secret did not experience significant operational disruptions in Q1. However, the company has faced, and may continue to face, costs and financial consequences associated with the incident. These could adversely affect its financial outcomes, potentially impacting results for Q2 of fiscal 2025. The release of the company's first-quarter earnings was postponed due to a security incident that disrupted its information technology systems. Victoria's Secret chief financial officer Scott Sekella stated: 'Though we recognise the macro environment is uncertain, we will continue to be disciplined in controlling costs and will remain agile, reading and reacting to what the customer is telling us to ensure we are building upon our solid foundation and realising the full potential of our globally recognised brands.' In Q2 2025, Victoria's Secret forecasts net sales between $1.38bn and $1.41bn - a slight decrease from the $1.417bn recorded in the Q2 2024. The company anticipates adjusted operating income for Q2 to be between $15m and $35m, with adjusted net income per diluted share estimated to fall between $0 and $0.15. Victoria's Secret is maintaining its forecasted net sales range of $6.2bn to $6.3bn for the full year of 2025. However, the company has adjusted its expected operating income, now anticipating it to be between $270m and $320m, down from the previously projected range of $300m to $350m. This revision takes into account an updated estimated net tariff impact of approximately $50m for the fiscal year. Victoria's Secret CEO Hillary Super stated: 'I am pleased with the strength the business demonstrated during the March and April timeframe, which included continued momentum in our powerhouse beauty business, ongoing strength in PINK apparel, and newness in sport and swim as we reclaim our position as a full lifestyle brand.' "Victoria's Secret exceeds Q1 FY25 expectations" was originally created and published by Retail Insight Network, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
Yahoo
12-06-2025
- Business
- Yahoo
Victoria's Secret & Co (VSCO) Q1 2025 Earnings Call Highlights: Strategic Growth Amidst ...
Net Sales: $1.353 billion for Q1 2025, flat compared to last year. Adjusted Operating Income: $32 million for Q1 2025. Adjusted Net Income per Diluted Share: $0.09 for Q1 2025. Total Comparable Sales: Down 1% compared to last year. Adjusted Gross Margin Rate: 35.2%, a decline of 170 basis points from Q1 2024. Adjusted SG&A Rate: 32.8%, better than the guidance range. International Sales Growth: 9% increase to nearly $200 million. Cash Balance: $138 million at the end of Q1 2025. Inventory Growth: Up 6% compared to last year. Fiscal Year 2025 Net Sales Forecast: $6.2 billion to $6.3 billion. Fiscal Year 2025 Adjusted Operating Income Forecast: $270 million to $320 million. Fiscal Year 2025 Adjusted Net Income per Diluted Share Forecast: $1.80 to $2.20. Store Openings and Closures: 16 new stores planned, 30 to 40 closures expected in 2025. Warning! GuruFocus has detected 7 Warning Signs with SAIL. Release Date: June 11, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Victoria's Secret & Co (NYSE:VSCO) exceeded both top- and bottom-line guidance for the first quarter of 2025, showcasing strong execution against strategic priorities. The company reported significant growth in its Beauty segment, marking its seventh consecutive quarter of growth, driven by successful product launches and customer engagement. PINK Apparel delivered its third consecutive quarter of positive comps, with significant margin expansion and increased customer engagement. The international business showed robust growth, with high single-digit gains and strong performance in the digital channel, particularly in China. Victoria's Secret & Co (NYSE:VSCO) successfully renewed its asset-based lending facility, securing a five-year term extension with favorable terms, enhancing financial flexibility. Total comparable sales for the quarter were down 1% compared to the previous year, indicating challenges in maintaining sales momentum. The company faced a security incident that impacted its e-commerce operations, resulting in an estimated $20 million net sales impact for the second quarter. Gross margin rate declined by 170 basis points year-over-year, primarily due to elevated freight rates, tariff-related adjustments, and increased GWP activity. The intimates market remains pressured, with a noted decline in share, particularly in the bras and panties categories. Victoria's Secret & Co (NYSE:VSCO) anticipates continued tariff headwinds, with a projected net impact of approximately $50 million for fiscal year 2025. Q: Hillary, could you dive deeper into the marketing strategy following the hiring of the new Chief Marketing Officer? What changes should we expect in terms of customer messaging? A: Hillary Super, CEO: Elizabeth, our new CMO, is in her early days, but we're focusing on acquisitions through a segmented media plan and an Always On bra campaign. You'll see a visual evolution with VS and a younger expression in PINK. We're optimizing our marketing funnel, reducing spend on content creation, and increasing spend on distribution. Q: Scott, what level of price increases is embedded in your guide due to tariffs, and how are you considering demand elasticity? A: Scott Sekella, CFO: We're optimizing promotions, pulling back on traditional percent-off deals, and being strategic with pricing across categories. We're mindful of not exceeding price points and will adjust based on value perception. Q: Hillary, where have you made the most progress in the first quarter regarding brand evolution? A: Hillary Super, CEO: We've made significant progress with PINK, especially in apparel, and Beauty continues to grow. We're working on making VS more energetic and joyful, moving away from a too-serious tone. Q: Scott, can you break down the components of the 170-basis-point decline in gross margin and how they should evolve? A: Scott Sekella, CFO: The biggest headwind was inbound rates, expected to subside later. We also faced tariff-related order cancels and increased GWPs, partially offset by reduced traditional promotions. We expect tariffs to be a significant headwind throughout the year. Q: Hillary, how do you see the product assortment at VS and PINK, and what are the strategic priorities for the back half of the year? A: Hillary Super, CEO: We're focusing on marketing optimization and acquisition strategies. We're bullish on PINK and Beauty, and we have innovation launches planned for intimates in the back half of the year to differentiate us further. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
