TLDR
- Victoria’s Secret Q3 revenue climbed 9% to $1.5 billion, beating analyst estimates of 4.6% growth
- Adjusted EPS posted 27 cents versus expected loss of 59 cents, an 86-cent beat
- October runway show reached 60 million views and drove sales for both Victoria’s Secret and Pink brands
- Company increased full-year revenue guidance to $6.45-$6.48 billion from $6.33-$6.41 billion
- Pink brand performance exceeded expectations with low double-digit growth in Q3
Victoria’s Secret posted Q3 results that blew past Wall Street forecasts. Revenue grew 9% to $1.5 billion for the quarter ended November 1.
Analysts expected just 4.6% growth. The company nearly doubled those estimates.
CEO Hillary Super attributed the performance to improvements across product, customer experience, and marketing. Super joined from Savage x Fenty in September 2024 to lead the turnaround.
The customer “reactivated” during the quarter. Market share grew across all channels and regions.
Financial Performance Improves
Net losses shrank to $37 million from $56 million year-over-year. Adjusted earnings per share reached 27 cents.
Wall Street had forecast a 59-cent loss. The 86-cent beat crushed expectations.
Adjusted operating income hit breakeven. The company previously guided for a $35 million to $55 million loss.
Last year’s Q3 posted a $28 million operating loss. Gross margin expanded 170 basis points thanks to less promotional activity and stronger regular-price sales.
The Victoria’s Secret brand grew mid-single digits. Pink surged low double digits.
Both brands got a boost from the October runway show. The livestreamed event generated over 60 million views and 50 billion impressions.
Pink and Runway Show Drive Growth
Victoria’s Secret returned to runway shows in 2024 after years away. The 2025 show built on lessons from the first event.
“The focus with Victoria’s Secret is really sharpening what sexy is today for us,” Super said.
Pink emerged as the standout performer. Super said the brand has more intimates opportunity than initially anticipated.
Adore Me, bought for $400 million in early 2023, received new management recently. The company continues evaluating opportunities for the brand.
Victoria’s Secret raised full-year revenue guidance to $6.45 billion to $6.48 billion. Previous guidance stood at $6.33 billion to $6.41 billion.
Analysts projected $6.39 billion. Adjusted EPS guidance increased to $2.40 to $2.65 from $1.80 to $2.20.
The consensus estimate was $2.12. The outlook accounts for a $90 million tariff impact this year.
Looking Ahead to Q4
Comparable sales rose 8% in Q3. Q4 revenue is projected at $2.17 billion to $2.2 billion.
Adjusted EPS for the fourth quarter is expected between $2.20 and $2.45. CFO Scott Sekella emphasized cost management while maintaining investments in product innovation and customer experience.
Super expressed confidence in the turnaround strategy. The team sees measurable results across every initiative.
“We’re seeing real consistency across the board,” Super said. “It’s not one month or one activity, it’s really everything working in concert.”
Market share gains came largely from off-price channels. This suggests better marketing and product focus can attract shoppers beyond value seekers.
Shares jumped 11.3% following the earnings announcement as investors responded to the beat and raised guidance.
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