Scott Sekella
CFO at Victoria's Secret
Now moving on to our updated outlook for fiscal year twenty twenty five and our outlook for the second quarter. As Hillary mentioned, for fiscal year twenty twenty five, we are maintaining our forecasted net sales range of $6,200,000,000 to $6,300,000,000 compared to net sales of $6,204,000,000 in fiscal year twenty twenty four, which excludes the gift card breakage benefit of $26,000,000 recognized in the fourth quarter of twenty twenty four. At this forecasted level of sales, we now expect our adjusted operating income for fiscal year twenty twenty five to be in the range of $270,000,000 to $320,000,000 The revised outlook includes a gross tariff impact of approximately $120,000,000 which assumes 30% China tariffs and 10% non China, with tariff mitigation of approximately $70,000,000 for a net impact to fiscal year twenty twenty five of approximately 50,000,000 mitigation levers include cost optimization with vendors, additional sourcing diversification, a more efficient air to ocean freight mix, and a combination of select pricing adjustments through more targeted promotions and strategic price modifications where we see a value proposition gap in the marketplace. Adjusted non operating expenses consisting principally of interest expense are projected to be about $70,000,000 for fiscal year twenty twenty five, down from the $84,000,000 in fiscal year twenty twenty four, driven by expected lower levels of weighted average borrowings along with lower interest rates.
