Victoria’s Secret & Co. announced on Wednesday first-quarter revenues fell 5% to $1.407 billion, as the lingerie giant blamed a volatile macro environment and increased promotional activity, which also hit margins.

The Reynoldsburg, Ohio-based company reported a double-digit decline in comparable sales, down 11%, for the three months ending April 29.
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The owner of its namesake Victoria’s Secret brand, and Adore Me, said it managed to stay in the black during the quarter, with earnings dropping to $1 million, or $0.01 per diluted share, compared to net income of $81 million, or $0.93 per diluted share, in the prior-year period.

“The first quarter continued to be a volatile macro environment for our customer and as the quarter progressed business became more challenging. Sales were in-line with our original expectations; however, we were more promotional than planned and ended the quarter at the lower-end of our adjusted operating income guidance. Sales performance was particularly challenging in our core categories where there was significant decline in the overall stores and digital intimates market in North America,” said ​chief executive officer, Martin Waters.

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