Victoria’s Secret & Co. (NYSE:VSCO) Q4 2022 Earnings Call Transcript

Corey Tarlowe: Got it. That’s helpful. You talked about investments that you’re making. Could you just update us on the $250 million in cost savings plans? And then also, are you planning to make any more acquisitions this year?

Timothy Johnson: Last question I want to answer which is probably not surprising to you. But the first part of the question, Corey, I think we’re referring to the transform the foundation goal that we set in October at our Investor Day at $250 million. In our prepared remarks, I think we indicated that less than 1/3 of that or a little less than 1/3 of that happens here in 2023. And I would suggest that’s fairly evenly split or maybe a little bit more tilted towards expense and a little less towards margin here in 2023. So a slight margin benefit — more benefit on the expense line to fund some of the growth initiatives that I mentioned as we move through 2023, get to the fourth quarter and into 2024, that’s really where you’ll see the amount of savings from the Transforming the Foundation goal start to grow and it will grow most notably from a margin perspective and cost of goods around initiatives that we’re working on with Dean and Chris Collier and their leadership team.

Martin Waters: Okay. I think we’ve got time for one more question.

Operator: Our next question comes from Jonna Kim with TD Cowen.

Jonna Kim: Thank you, for taking my question. Just a quick one. Any early learnings from the loyalty program? And what are you seeing in terms of the customer retention trends and how you plan to leverage the program to further increase retention rate? Thank you so much.

Martin Waters: Too early to declare victory on the loyalty. We’ve only been out for a week. But again, referencing the time I spent with our stores team, they were super energized by it, take-up has been good. A reminder, this is free. And we convert all of the customers who are currently in our credit card system onto the program. So, we should be at about 3 million people in the system by the end of this month. So, there’s a sizable body — sizable community that are going to benefit from this program. And we feel really good about where it’s at. We’ve got new benefits for customers we’ve got an — all Access tier at $300. We got a VIP tier at $750 million we’ve got features that we’ve never had before that will enable consumers to talk to each other as well as talk to us.

So, we think it’s going to be a great program. It’s been a long time in coming, and I think the benefits will come through in the back half of the year. That’s probably all we’ve got time for, right, Kevin. It’s 8:55. We committed to finishing at 8:55. So thank you all for your interest in our business. Wish you well.

Jonna Kim: Thank you.

Operator: That concludes today’s conference. Thank you for participating. You may disconnect at this time.