Victoria’s Secret turnaround continues amid ‘exceptional' quarter
Victoria’s Secret & Co. showed growing momentum in its fourth quarter with better-than-expected earnings and sales.
In the earnings statement, CEO Hillary Super said the company delivered an “exceptional” fourth quarter and a “standout’ year. Under Super’s leadership, the lingerie giant has regained its footing with a renewed focus on its core bra category, its Pink brand and beauty.
“In the quarter, our customer responded enthusiastically to our product and marketing, as demonstrated by growing new customer acquisition and increased AURs,” Super said. “Our 2025 results reflect the progress we have made against our Path to Potential strategy as we build brand heat and powerful connections with our customers.”
Fiscal 2025 marked Pink's strongest growth in a decade, Super said on the earnings call. Later this year, the company will open a standalone Pink pop-up in New York City;s SoHo neighborhood.
Reflecting its emphasis to grow its core Victoria’s Secret and Pink brands, the company said it has initiated a strategic review of DailyLook, a subscription personal styling service that it acquired through its 2023 acquisition of Adore Me.
Additionally, the retailer said it continues to assess the Adore Me business and “explore opportunities to optimize it within the broader portfolio.” And on the earnings call, CFO and COO Scott Sekella said the company has ended the intimates subscription offering for its Adore Me business and converted it to a loyalty program. It also has shuttered Adore Me's distribution center in Mexico.
Fourth Quarter
The retailer reported that its net income totaled $183.63 million, or $2.14 per share, for the quarter ended Jan. 31, compared with $193.4 million, or $2.33 per share, in the year-ago period. Excluding impairment charges related to its Adore Me assets, restructuring charges and other one-time expenses, adjusted net income was $238 million, or $2.77 per share. Analysts had expected adjusted earnings of $2.52 per share.
Sales rose 8% to $2.27 billion, beating estimates of $2.23 billion. Total comparable sales increased 8%, marking the third consecutive quarter of gains.
Full Year
Victoria’s Secret’s net sales for fiscal year rose 5% to $6.553 billion, above its previously communicated guidance range of $6.450 billion to $6.480 billion. Total comparable sales were 5%.
“We enter fiscal 2026 from a position of strength,” Super said. “With a clear brand vision, a faster and more agile operating model, and a strong pipeline of product and brand moments ahead, we are confident in our ability to deliver profitable growth and create long‑term shareholder value.”
The company is forecasting fiscal year 2026 net sales to be in the range of $6.850 billion to $6.950 billion compared to net sales of $6.553 billion in fiscal year 2025. At this forecasted level of net sales, operating income for fiscal year 2026 is expected to be in the range of $430 million to $460 million compared to fiscal year 2025 adjusted operating income of $403 million.
Victoria's Secret operates 1,420 retail stores in approximately 70 countries.
