Victoria’s Secret & Co (NYSE:VSCO) stock fell 4.40% (As on June 12, 11:21:02 AM UTC-4, Source: Google Finance) after the company reported better-than-expected first quarter results, beating analyst estimates for both earnings and revenue. The company’s total comparable sales decreased 1% YoY. Operating income for the quarter was $20 million, down from $26 million in the prior-year period. The Company has reported a net loss of $2 million, for the first quarter of 2025 compared to a net loss of $4 million for the first quarter of 2024. The company is pleased with the strength the business demonstrated during the March and April timeframe, which included continued momentum in the powerhouse Beauty business, ongoing strength in PINK apparel, and newness in sport and swim as the company reclaim the position as a full lifestyle brand.

Moreover, from a brand perspective for the quarter, both Victoria’s Secret and Pink registered a slight year-over-year retail sales decline, while Beauty was up low single digits. From a regional perspective, the company registered strong high single-digit growth in the international operations, while the North American business was essentially flat for the period. For both Victoria’s Secret and Pink, digital channels slightly outpaced stores.

However, the company’s stock tumbled after the company’s announcement of a security incident that has led to the temporary shutdown of its website and some in-store services. The retailer is actively working to resolve the issue and has maintained that its physical stores remain open.

VSCO in the first quarter of FY25 has reported the adjusted earnings per share of 9 cents, beating the analysts’ estimates for the adjusted earnings per share of 2 cents. The company had reported flat adjusted revenue growth to $1.353 billion in the first quarter of FY25, beating the analysts’ estimates for revenue of $1.32 billion.

Looking ahead, Victoria’s Secret reaffirmed its full-year 2025 sales guidance of $6.2 billion to $6.3 billion. However, the company revised its adjusted operating income forecast to $270 million to $320 million, down from the previous range of $300 million to $350 million, citing an estimated $50 million net tariff impact. That forecast assumes tariff rates of 30% on China and 10% on other countries.

For the second quarter, the company expects net sales between $1.380 billion and $1.410 billion, with adjusted earnings per share ranging from $0.00 to $0.15. Analysts on average projected adjusted earnings of 29 cents a share. Its sales forecast met estimates.