Key Highlights
- Victoria’s Secret surpassed Q4 projections with earnings per share of $2.77, exceeding the anticipated $2.52
- Quarterly revenue climbed 8% to $2.27 billion compared to the previous year
- The retailer achieved three consecutive quarters of positive comparable sales growth — its longest winning streak in four years
- Annual sales forecast of $6.85B–$6.95B exceeded analyst consensus of $6.8B
- Shares plunged more than 6% during premarket hours despite impressive financial performance
The lingerie giant delivered an impressive holiday season performance, surpassing analyst expectations across key metrics. However, market participants responded with skepticism, sending shares down over 6% before Thursday’s opening bell.
The company reported adjusted earnings per share of $2.77, comfortably beating the Wall Street consensus of $2.52. Quarterly revenue reached $2.27 billion, representing an 8% increase from $2.11 billion in the year-ago period and topping the $2.23 billion forecast.
For the quarter, net income totaled $183.63 million, translating to $2.14 per diluted share. This compares with $193.4 million, or $2.33 per share, during the comparable quarter last year.
The reporting period concluded on January 31. Comparable store sales surged 8%, significantly outperforming the 5.6% growth rate Wall Street analysts had projected, according to StreetAccount data.
This achievement represents the third straight quarter of positive comparable sales momentum — the company’s longest consecutive growth period in at least four years, based on FactSet records.
CEO Hillary Super, who assumed leadership approximately 18 months ago, has orchestrated a comprehensive turnaround initiative centered on product innovation, marketing excellence, and strengthening brand appeal. The transformation strategy emphasizes the Pink collection, expanding the beauty segment, and reclaiming dominance in intimate apparel.
“Our customer responded enthusiastically to our product and marketing, as demonstrated by growing new customer acquisition and increased average unit retails,” Super said in a statement.
Forward Outlook Exceeds Projections
For the first quarter, management anticipates revenue ranging from $1.49 billion to $1.53 billion, surpassing Wall Street’s $1.42 billion expectation.
Full-year revenue guidance was established at $6.85 billion to $6.95 billion, exceeding the analyst consensus of $6.8 billion.
Operating income is forecast between $430 million and $460 million, compared with Street projections of $421 million.
The outlook presumes tariff rates remain at present levels — issued before the Supreme Court invalidated multiple Trump administration trade tariffs. Tariff impacts reduced adjusted operating income by approximately $85 million throughout fiscal year 2025.
DailyLook Faces Strategic Assessment
Victoria’s Secret announced it has initiated a comprehensive strategic evaluation of DailyLook, a styling platform obtained through the Adore Me acquisition in 2022.
The company described DailyLook as a “non-core asset.” Strategic reviews of this kind often lead to a sale.
Additionally, the company recorded $119.6 million in impairment charges associated with Adore Me assets during the reporting period.
Management noted that fiscal 2026 commenced with robust Valentine’s Day results, with positive trends extending into the current year.
VSCO shares have appreciated 11% year-to-date and approximately 194% over the trailing twelve months entering Thursday’s trading session.
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