Victoria's Secret delays earnings release after cybersecurity breach disrupts operations
Victoria's Secret is postponing the release of its quarterly earnings after a security breach disrupted corporate operations and forced the popular lingerie brand to take its US shopping website offline for several days last week.
In an update on Tuesday, the Ohio-based retailer said it first detected a 'security incident involving its information technology systems' on May 24 and immediately activated its response protocols 'to contain and eradicate unauthorized network access,' including engaging third-party experts, AP reported.
As a precaution, the company temporarily shut down corporate systems and its US retail website on May 26.
The website remained inaccessible for several days and was only restored late Thursday, causing ongoing frustration among customers.
While Victoria's Secret did not explicitly confirm a ransomware attack, analysts noted that the characteristics of the incident align with such threats, which have become increasingly common across the retail sector. The breach also impacted some in-store services at both Victoria's Secret and Pink-branded outlets, though the company said most of those operations had since resumed.
The cyberattack is also affecting the company's ability to release its first-quarter financial results. Victoria's Secret said that it is still working to restore full access to its corporate systems, which has 'prevented employees from accessing certain systems and information' required to complete its financial reporting.
Despite the disruption, the company released preliminary first-quarter results for the period ending May 3, which predated the breach.
It expects to report $1.35 billion in net sales and an adjusted operating income of $32 million—figures that exceed its previous guidance. Analysts polled by FactSet had forecast sales of approximately $1.33 billion.
Victoria's Secret has not announced a new date for the release of its complete first-quarter earnings report.
The company maintained that the breach had no impact on its first-quarter results but added it would continue to 'assess the full scope' of the incident, including any future financial implications.
The Victoria's Secret breach comes amid a broader surge in cybersecurity incidents targeting consumer-facing brands. In recent weeks, British retailers including Marks & Spencer, Harrods, and Co-op have reported cyberattacks, with M&S estimating a potential financial hit of 300 million pounds ($400 million) due to the disruption of online orders and supply chain issues.
In a separate case last month, Adidas disclosed that consumer contact information had been accessed through a third-party customer service provider.
Following such incidents, cybersecurity experts urge consumers to stay vigilant. They warn that fraudsters may exploit the situation by sending phishing emails, offering fake promotions, or attempting to misuse compromised data.
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