Victorias Secret & Co.

What they do

The company operates approximately 860 company-operated stores in the U.S., Canada, and China, plus over 560 stores in about 70 countries under franchise, license, and wholesale arrangements. It sells through its own websites (VictoriasSecret.com, PINK.com, AdoreMe.com, DailyLook.com) and other digital channels. It operates as a single segment, with products including bras, panties, lingerie, sleepwear, apparel, sport, swim, and prestige fragrances and body care.

Revenue drivers

• Victoria's Secret — Core brand offering bras, panties, lingerie, sleepwear, swim, lounge, sport, and beauty; the largest revenue contributor.
• PINK — Lifestyle brand for young women offering apparel, sleepwear, intimates, swim, beauty, and accessories; targeted growth priority.
• Beauty — Industry-leading beauty business with prestige fragrances and body care; a stated growth priority.
• International — Includes franchise, license, wholesale, and China joint venture operations; Q1 2026 net sales increased 45% year-over-year.

Recent performance

For the first quarter ended May 2, 2026, net sales rose 15% to $1.560 billion, with total comparable sales up 13%. Operating income was $76 million versus $20 million in the prior year, and net income was $48 million, or $0.56 per diluted share, compared to a net loss of $2 million in Q1 2025. The company repurchased 2.2 million shares for $100 million during the quarter. Fiscal 2025 annual revenue was $6.55 billion with net income of $161 million.

Strategy

The company is executing its 'Path to Potential' growth plan focused on four priorities: supercharging bra authority, recommitting to PINK, fueling growth in beauty, and evolving brand projection and go-to-market strategy. Management emphasizes product innovation, brand storytelling, customer acquisition, and digital and store channel integration. They are also managing costs while investing in brand strength and customer experience, and are working to mitigate tariff impacts.

Risks

• Economic downturn — Adverse economic conditions, including inflation, high interest rates, and recession, could reduce discretionary consumer spending on the company's products.
• Tariffs and trade policy — Tariffs impacted fiscal 2025 operating income by approximately $85 million, and incremental Q1 2026 impact was $14 million; future tariff policy remains uncertain.
• Competition and market share — The company faces intense competition in intimate apparel and beauty, and must maintain brand relevance and customer loyalty to sustain market share.
• Supply chain and sourcing — Disruptions in global supply chain, labor shortages, or increased costs could affect product availability and margins.

Outlook

Management raised full-year 2026 net sales guidance to $7.030-$7.130 billion and adjusted operating income guidance to $550-$580 million. For Q2 2026, they forecast net sales of $1.590-$1.615 billion and operating income of $90-$100 million. The CEO expressed confidence in continued momentum and growth, citing strong product pipeline and brand initiatives.