Victoria's Secret momentum continues; stores remain 'heartbeat' of business
Victoria’s Secret & Co.’s turnaround continued to gain traction in the second quarter with broad-based growth across its business amid its fifth straight quarter of positive comparable sales growth.
The intimates giant reported adjusted earnings that easily topped analyst estimates. It also raised its full-year outlook, citing progress in its turnaround plan.
“Our second quarter results demonstrate the continued strength and improving quality of the business,” said CFO Scott Sekella. “We continued to benefit from stronger regular-price selling and disciplined execution, while navigating ongoing tariff uncertainty. Given our strong first-half performance and continued momentum entering the back half, we are raising our full-year net sales and adjusted operating income outlook.”
The earnings report comes a little over one month before the Victoria’s Secret Fashion Show, which will be held on Oct. 18 in Los Angeles. This year, the event includes a pre-show docuseries, “Angles Among Us,” that highlights the journeys of aspiring models to be Victoria’s Secret next runway star (or “angel”). It will premier on YouTube on Sept. 27, with more episodes to follow. The winning model will be revealed at the fashion show and receive a contract with IMG Models.
On the earnings call, CEO Hillary Super said that the company is continuing to evolve the show from a single event into an ongoing franchise. She noted that, during last year's show, people threw watch parties, gathered with friends, and engaged across social.
"That engagement helped drive customer acquisition and product demand that exceeded our expectations and gives us confidence to increase our marketing investment behind the opportunity this year," she told analysts. "We are also applying learnings from last year by creating dedicated watch parties around the country, making the show more accessible with distribution across YouTube and live streaming on social platforms."
On the call, Super also told analysts that stores remain a very important competitive tool for the retailer.
“They differentiate us,” she told analysts, adding that what Victoria's Secret does in terms of bra fitting in a personal space is “unmatched.”
“We definitely see Gen Z wanting a store experience even more than other groups of customers,” Super said. “We do think there is opportunity to selectively grow our footprint….globally, but also in North America. We very much believe in stores, very much believe that they are at the heartbeat of our business, and proud of what they have delivered.”
Looking ahead, Victoria's Secret said it sees significant opportunity and is “doubling down” on what is working. It is increasing its strategic marketing investment to expand reach, deepen customer connection, “and build on the brand heat we are creating.”
“With more product innovation, partnerships and emotionally connected campaigns ahead – including the Angels Among Us docuseries, an even bigger and better Victoria’s Secret Fashion Show and holiday activations – we are incredibly excited about the back half of the year and the opportunity to continue building both of these iconic brands,” stated Super.
Second Quarter
Net income totaled $183 million, or $2.18 per share, in the quarter ended Aug. 2, compared to $16 million, or $0.20 per share, in the year-ago period. Adjusted net income was $80 million, or $0.95 per share, compared last year’s adjusted net income of $27 million, or $0.33 per share. Analysts had expected adjusted earnings of $0.77 per share.
The company received IEEPA tariff refunds of more than $140 million during the quarter, representing over 95% of the tariffs paid by the dompany. The impact of the tariff refunds, along with the other adjusted item have been excluded from the adjusted results.
Second-quarter net sales increased 10% to $1.61 billion, just below analysts estimates of $1.62 billion. Total comparable sales for the quarter rose 9%.
For the full year, Victoria’s Secret now expects sales to range from $7.1 billion to $7.2 billion this year, up from the $7 billion to $7.1 billion it had previously forecast. Adjusted operating income for the year is expected to increase to $560 million to $590 million, up from the $550 million to $580 million previously forecast
In late August, the company made two appointments that reflect its increased commitment to technology, including tapping Adrian Butler as executive VP and chief technology officer. Prior to Victoria’s Secret, Butler served as CTO of Foot Locker, from June 2023 to April 2026.
Second Quarter
Victoria’s Secret operates approximately 1,430 retail stores in about 70 countries.
