The lingerie brand reported net sales of $1.5 billion for the first quarter of 2022, a decrease of 4.5 percent compared to the same period the year prior. The drop was in line with expectations that sales would decrease between 4 percent and 8 percent, according to the company.

CEO Martin Waters attributed the decline to “significant global headwinds and a challenging inflationary environment.” The company expects second-quarter sales to either increase or decrease by a low-single-digit percentage compared to the same period in 2021. Victoria’s Secret is experimenting with its business model after spinning off from L Brands last year. It announced a wholesale partnership with Amazon to sell its VS Beauty line earlier this year.

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Victoria’s Secret Reports Favourable Fourth-Quarter Earnings But Forecasts Downturn

The lingerie giant beat analysts’ estimates for its earnings and sales in the quarter ending January 29, 2022, garnering $2.175 billion in revenue and $246.1 million in net earnings.