By Sabela Ojea

Victoria's Secret is scheduled to report earnings for the fourth quarter after the market closes Wednesday. Here's what you need to know:

-- PROFIT: Victoria's Secret is expected to post a fourth-quarter net profit of $184.4 million, or $2.28 a share, according to FactSet. This compares with a profit of $181.1 million, or $2.29 a share, for the same period a year earlier.

-- ADJUSTED EARNINGS: Stripping out one-time items, the lingerie retailer's earnings are forecast to come in at $2.30 a share, according to FactSet.

-- SALES: Victoria's Secret's quarterly sales are expected to rise slightly to $2.08 billion, according to FactSet.

Shares have fallen 44% over the past three months.

WHAT TO WATCH:

-- Victoria's Secret results will provide some insight into the state of the consumer at a time when shoppers stand to face higher prices after President Trump issued sweeping tariffs on Mexico, China and Canada. Retailers including Best Buy and Target both recently warned of higher prices looming, which could eat into demand for their products.

-- Look for comments about the company's performance in its core North America market after seeing a recovery in the third quarter and whether its international exposure continues to pay off. The company is in the midst of a turnaround under the leadership of Hillary Super that has included marketing initiatives such as the return of its VS Fashion Show in October to maintain its cultural relevance.

-- After the company provided an updated outlook for the current quarter in January, all eyes will be on guidance. For the first quarter, analysts are looking for the company to post sales growth of around 3% to $1.40 billion. At the end of January, Super said Victoria's Secret exited the holiday and its January semiannual sale in a good inventory position.

Write to Sabela Ojea at sabela.ojea@wsj.com

(END) Dow Jones Newswires

March 05, 2025 09:30 ET (14:30 GMT)

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