By Katherine Hamilton

Victoria's Secret shares edged down Wednesday after the company said its chief financial officer would retire, marking the second major leadership change in five months.

The stock fell 6% to $35.57. It has gained 38% over the past 12 months.

The intimates company, which is restructuring, said Chief Financial Officer Timothy Johnson plans to retire in June. He will be succeeded by Scott Sekella, who most recently served as chief financial officer at Joann, a fabric and crafts company that originally filed for bankruptcy in March. Sekella resigned from Joann in July.

The transition comes after Hillary Super started as Chief Executive in September. Super came from competitor Savage X Fenty, succeeding three-year veteran Martin Waters.

Victoria's Secret's broader efforts to improve profitability and sales may not be linear, especially as macroeconomic headwinds could create some near-term challenges, Jefferies analysts said.

The company increased the lower end of the range for its fourth-quarter outlook. It expects sales to increase 3% to 4%, up from a prior range of 2% to 4%. Adjusted earnings per share are now seen at $2.20 to $2.30 a share, up from $2 to $2.30 a share previously. Victoria's Secret had adjusted earnings of $2.58 a share in the previous fourth quarter.

"While we do not expect a linear recovery, we believe that [Victoria's Secret's long-term] opportunity remains unchanged and that the company is capable of restoring lost sales while recapturing margin," analysts led by Corey Tarlowe wrote in a note to clients.

Foot traffic has improved under Super and was positive for October and November after negative readings in nine out of the 12 months last year.

Write to Katherine Hamilton at katherine.hamilton@wsj.com

(END) Dow Jones Newswires

January 29, 2025 12:28 ET (17:28 GMT)

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