Victoria's Secret Postpones Earnings Release Following Cyberattack Crisis
ICARO Media Group
**Victoria's Secret Delays Earnings Release After Cybersecurity Breach**
Victoria's Secret is pushing back the announcement of its quarterly earnings following a security breach that severely affected its corporate systems and led to the temporary shutdown of its U.S. online shopping platform.
The lingerie giant disclosed that the security incident was detected on May 24 and immediate measures were taken to counteract unauthorized access to their network. Leveraging the expertise of third-party specialists, the Ohio-based company temporarily disabled its corporate systems and U.S. website starting May 26 as a protective measure. Their online store remained inaccessible for several days, causing significant inconvenience for customers, until it was restored late Thursday.
Although the company has not expressly confirmed it, the cyberattack signals characteristics consistent with a ransomware assault - a growing threat in the retail sector. Beyond its digital presence, some in-store services at Victoria's Secret and its Pink-branded outlets were also impacted, though most were reported back to operational status by Tuesday.
As a consequence of the ongoing impact on corporate systems, Victoria's Secret has delayed its first-quarter earnings report. The disruption continues to obstruct employee access to essential systems and information, hindering the completion of the financial results. Despite this, preliminary figures indicate a positive quarter, with expected net sales reaching $1.35 billion and an adjusted operating income of $32 million as of May 3, surpassing previous forecasts. Analysts had anticipated sales to total around $1.33 billion.
Victoria's Secret reassured that the period affected by the breach does not encompass the first-quarter results, as the fiscal quarter concluded before the incident. Nonetheless, the company remains vigilant, assessing the full repercussions of the breach, particularly any future financial implications.
The cyberattack on Victoria's Secret is part of an increasing trend where retail companies face operational disruptions and potential data breaches. Recently, British retailers like Marks & Spencer, Harrods, and Co-op have reported similar cyberattacks, with Marks & Spencer estimating a substantial loss of 300 million pounds ($400 million) due to halted online orders and depleted store inventories. Adidas also reported an incident where consumer data was compromised via a third-party service provider.
Amid such breaches, cybersecurity experts advise shoppers to stay vigilant, warning of potential phishing scams and the misuse of sensitive information in the wake of such incidents.