TLDR
- Victoria’s Secret exceeded Q4 profit and revenue projections, delivering EPS of $2.77 versus the $2.52 consensus
- Quarterly revenue climbed 8% year-over-year to reach $2.27 billion
- Comparable sales posted growth for the third straight quarter — marking the longest positive run in four years
- Annual revenue forecast of $6.85B–$6.95B surpassed analyst expectations of $6.8B
- Shares fell more than 6% during premarket hours despite the robust performance
Victoria’s Secret delivered an impressive holiday quarter that surpassed analyst expectations on both the top and bottom lines. Yet the market reaction was decidedly negative — shares tumbled over 6% in Thursday’s premarket session.
The lingerie retailer reported adjusted earnings per share of $2.77, comfortably beating the Street’s $2.52 projection. Quarterly revenue reached $2.27 billion, representing an 8% increase from the prior-year figure of $2.11 billion and exceeding the $2.23 billion consensus.
For the quarter, net income totaled $183.63 million, translating to $2.14 per diluted share. This compared to net income of $193.4 million, or $2.33 per share, in the year-ago period.
The reporting period concluded on January 31. Comparable store sales surged 8%, significantly outperforming the 5.6% gain analysts had projected, according to StreetAccount data.
This achievement represents the third consecutive quarter of positive comparable sales performance — the company’s longest winning streak in a minimum of four years, based on FactSet records.
CEO Hillary Super, who assumed leadership approximately 18 months ago, has been orchestrating a comprehensive turnaround emphasizing product innovation, marketing effectiveness, and brand positioning. The approach prioritizes the Pink brand, expands the beauty segment, and reinforces the company’s 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.
Guidance Tops Estimates
For the first quarter, management projects revenue in the range of $1.49 billion to $1.53 billion, exceeding Wall Street’s $1.42 billion forecast.
Full-year revenue guidance landed between $6.85 billion and $6.95 billion, surpassing the consensus projection of $6.8 billion.
Operating income is anticipated to range from $430 million to $460 million, above analyst estimates of $421 million.
The outlook assumes tariff rates remain at present levels — issued before the Supreme Court invalidated multiple broad-based trade tariffs from the Trump administration. Tariff impacts reduced adjusted operating income by approximately $85 million throughout fiscal 2025.
DailyLook Under Review
Victoria’s Secret announced it has initiated a strategic assessment of DailyLook, a styling platform the company obtained through its 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 retailer recorded $119.6 million in impairment charges associated with Adore Me assets during the quarter.
Management noted that fiscal 2026 began on a positive note with robust Valentine’s Day sales, and momentum has persisted into the current period.
VSCO shares have gained 11% year-to-date and approximately 194% over the trailing 12 months prior to Thursday’s trading session.
