Victoria’s Secret witnessed a catastrophic downturn in its shares as it delivered an unexpected warning of anticipated sales decline for the year.

On Thursday, the company experienced its most dismal trading day ever, with shares plummeting by a staggering 30%, marking the most significant drop since its initial public offering in July 2021, as reported by Bloomberg.

This nosedive ensued subsequent to the disappointing results unveiled for the crucial holiday period, coupled with the bleak projection of a sales decline throughout 2024.

Store sales

During the quarter ending on Feb. 3, the company disclosed a 6% decline in comparable store sales.

Forecasts indicate a sales figure of approximately $6 billion for the current year, in contrast to $6.18 billion recorded the previous year.

These figures fell short of Wall Street’s expectation of a slight uptick to $6.19 billion.

Victoria’s Secret’s Chief Executive, Martin Waters, acknowledged the prevailing challenges, stating, “As we look into the new year, we recognize the broader intimates market in North America has been down for four consecutive quarters, and we are planning the business appropriately conservative in the near-term.”

#MeToo movement

The company has grappled with inertia since its spinoff from L Brands in 2021, compounded by the negative repercussions of the #MeToo movement, which depicted Victoria’s Secret as outmoded and sexist.

The absence of inclusivity in its branding, as well as the association with former CEO and chairman Les Wexner’s ties to Jeffrey Epstein, have further marred its reputation.

Amidst this adversity, Victoria’s Secret has undertaken various initiatives to rejuvenate its appeal.

Notable among these efforts is a “try at home” pilot introduced in February, offering an alternative shopping experience.

Additionally, the company has expanded its product range to cater to a broader demographic, including collections tailored for women with disabilities and mastectomies, alongside the incorporation of plus-size models.