VSCO Q3 EPS $0.29 beats high-end guidance; sales down 9% YoY; Q4 EPS view $2.00-$2.45

The Company is forecasting full year 2022 net sales to decrease 6% to 7% compared to last year’s full year net sales of $6.785 billion. At this forecasted level of sales, adjusted operating income is expected to be in the range of $525 million to $575 million, or approximately 8% to 9% of sales. Adjusted net income for the full year 2022 is estimated to be in the range of $4.50 to $4.95 per diluted share.

The Company reported net income of $24 million, or $0.29 per diluted share for the third quarter of 2022, which was above the high-end of our previously communicated guidance range of $0.00 to $0.25 per diluted share. This result compares to net income of $75 million, or $0.81 per diluted share for the third quarter of 2021. Third quarter 2022 reported operating income was $43 million, which was above the high-end of our previously communicated guidance range of $10 million to $40 million. This result compares to operating income of $108 million in the third quarter of 2021. The Company reported net sales of $1.318 billion for the third quarter of 2022, a decrease of 9% compared to net sales of $1.441 billion in the prior year third quarter.

The Company is forecasting fourth quarter 2022 net sales to decrease in the high-single digit range compared to last year’s fourth quarter net sales of $2.175 billion. At this forecasted level of sales, operating income is expected to be in the range of $240 million to $290 million. Net income for the fourth quarter 2022 is estimated to be in the range of $2.00 to $2.45 per diluted share.