Victoria’s Secret & Co. Reports 2025 Fourth Quarter and Full Year Results
Rhea-AI Summary
Victoria’s Secret & Co (NYSE: VSCO) reported fourth-quarter net sales of $2.270B and fiscal 2025 net sales of $6.553B, beating prior guidance. Comparable sales rose 8% in Q4 and 5% for the year. Fiscal 2025 adjusted operating income was $403M and adjusted EPS was $3.00. The company issued Q1 2026 sales guidance of $1.490B–$1.525B and fiscal 2026 sales guidance of $6.850B–$6.950B. Management initiated a strategic review of DailyLook and continues to assess Adore Me.
Positive
- Q4 net sales of $2.270B
- Fiscal 2025 net sales of $6.553B (+5%)
- Adjusted operating income of $403M for fiscal 2025
- Adjusted EPS of $3.00 for fiscal 2025
- Q1 2026 sales guidance of $1.490B–$1.525B and FY26 guidance of $6.85B–$6.95B
Negative
- GAAP operating income fell to $271M in fiscal 2025 from $310M in 2024
- GAAP net income declined to $161M (fiscal 2025) from $165M
- Approximately $85M tariff headwind reduced margins in fiscal 2025
News Market Reaction – VSCO
In the Mar 5 session, VSCO declined 12.16%, reflecting a significant negative market reaction. Argus tracked a trough of -26.1% from its starting point during tracking. Our momentum scanner triggered 81 alerts that day, indicating high trading interest and price volatility. Trading volume was very high at 4.4x the daily average, suggesting heavy selling pressure.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Historical Context
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Feb 12 | Earnings call invite | Neutral | +1.1% | Scheduled timing and access details for Q4 2025 earnings call. |
| Dec 05 | Earnings beat/guidance | Positive | +18.0% | Q3 2025 sales growth and raised full-year 2025 guidance ranges. |
| Nov 14 | Earnings call invite | Neutral | +2.1% | Announcement of Q3 2025 earnings webcast logistics for investors. |
| Nov 04 | Governance response | Negative | -1.8% | Board comment on BBRC letter advocating governance and board changes. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Earnings-related updates have generally seen positive or modestly positive price reactions, including a strong move on raised guidance.
Over the last several months, Victoria’s Secret & Co. has been consistently communicating around earnings and governance. A December 5, 2025 release reported Q3 2025 results with higher net sales and raised full-year guidance, and the stock moved up 17.99%. Earlier and later, invitations to Q3 and Q4 earnings calls in November 2025 and February 2026 produced small positive moves. A November 4, 2025 board-related response to BBRC coincided with a modest decline. Today’s full-year and Q4 2025 results build on this earnings-focused communication pattern.
Key Terms
comparable sales financial
adjusted operating income financial
guidance financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
- Fourth Quarter and Full Year Results Exceeded Top- and Bottom-line Guidance
- Comparable Sales Increased
8% in the Fourth Quarter and5% for the Full Year - Fourth Quarter and Full Year Adjusted Operating Income Significantly Exceeded Expectations
- Initiates First Quarter and Fiscal 2026 Guidance
REYNOLDSBURG, Ohio, March 05, 2026 (GLOBE NEWSWIRE) -- Victoria’s Secret & Co. (“VS&Co” or the “Company”) (NYSE: VSCO) today reported financial results for the fourth quarter and fiscal year ended January 31, 2026.
Hillary Super, VS&Co Chief Executive Officer, said, “We delivered an exceptional fourth quarter and a standout year, exceeding top- and bottom-line guidance with broad based outperformance across brands, channels and geographies. We drove meaningful acceleration in the second half of the year, with fourth quarter net sales of
Ms. Super concluded, “We enter fiscal 2026 from a position of strength. 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.”
Scott Sekella, VS&Co Chief Financial and Operating Officer, said, “Our results reflect disciplined execution, strong margin performance, and increased operational agility. We delivered adjusted operating income of
Fourth Quarter 2025 Results
The Company reported net sales of
The Company reported operating income for the fourth quarter of 2025 of
Excluding the impact of the adjusted items described at the conclusion of this press release, adjusted operating income for the fourth quarter of 2025 was
As previously disclosed, last year’s results include an approximately
Excluding the impact from last year’s change in accounting estimate relating to outstanding gift cards, fourth quarter 2025 net sales increased approximately
Full Year 2025 Results
The Company reported net sales of
The Company reported operating income for fiscal year 2025 of
Excluding the impact of the adjusted items described at the conclusion of this press release, adjusted operating income for fiscal year 2025 was
Excluding the impact from last year’s change in accounting estimate relating to outstanding gift cards, fiscal year 2025 net sales increased approximately
Full Year and First Quarter 2026 Outlook
The Company is forecasting net sales for the first quarter of 2026 to be in the range of
The Company is forecasting fiscal year 2026 net sales to be in the range of
Strategic Alternatives for DailyLook
The Company has initiated a strategic review of DailyLook, a non-core asset within VS&Co. Acquired through the Adore Me transaction in December 2022, DailyLook has grown rapidly and achieved meaningful scale. As part of VS&Co’s continued focus on its core business, the Company is evaluating opportunities to position DailyLook for long-term success. This strategic review reflects VS&Co’s commitment to advancing the global growth of its two iconic brands, Victoria’s Secret and PINK, through the execution of its Path to Potential strategy. Additionally, the Company continues to assess the Adore Me business and explore opportunities to optimize it within the broader portfolio.
Adjusted Financial Information
At the conclusion of this press release, we have included a reconciliation of reported to adjusted results.
Quarterly Earnings Conference Call
Victoria’s Secret & Co. will conduct its fourth quarter earnings call at 8:30 a.m. Eastern on Thursday, March 5, 2026. To listen, call 1-800-619-9066 (international dial-in number: 1-212-519-0836); passcode 5358727. For an audio replay, call 1-800-839-2204 (international replay number: 1-203-369-3032); passcode 2485654 or log onto www.victoriassecretandco.com. The materials accompanying the earnings call have been posted on the Investors section of the Company’s website. The audio replay will be available approximately two hours after the conclusion of the call.
About Victoria’s Secret & Co.
Victoria’s Secret & Co. (NYSE: VSCO) is a specialty retailer of modern, fashion-inspired collections including signature bras, panties, lingerie, sleepwear, apparel, sport and swim as well as award-winning prestige fragrances and body care. VS&Co is comprised of market leading brands, Victoria’s Secret and PINK, that strive to inspire confidence, spark joy and celebrate sexy. Additionally, Adore Me, our digital intimates brand serves women across budgets and lifestyles. We are committed to empowering our more than 30,000 associates across a global footprint of 1,420 retail stores in approximately 70 countries.
Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995
We caution that any forward-looking statements (as such term is defined in the U.S. Private Securities Litigation Reform Act of 1995) contained in this press release or made by us, our management, or our spokespeople involve risks and uncertainties and are subject to change based on various factors, many of which are beyond our control. Accordingly, our future performance and financial results may differ materially from those expressed or implied in any such forward-looking statements, and any future performance or financial results expressed or implied by such forward-looking statements are not guarantees of future performance. Forward-looking statements include, without limitation, statements regarding our future operating results, the implementation and impact of our strategic plans, and our goals, intentions, beliefs and expectations. Words such as “estimate,” “commit,” “will,” “target,” “forecast,” “goal,” “project,” “plan,” “believe,” “seek,” “strive,” “expect,” “anticipate,” “intend,” “continue,” “potential” or the negative of these words and any similar expressions are intended to identify forward-looking statements. Risks associated with the following factors, among others, could affect our results of operations and financial performance and cause actual results to differ materially from those expressed or implied in any forward-looking statements:
- general economic conditions, inflation, and changes in consumer confidence and consumer spending patterns;
- market disruptions including pandemics or significant health hazards, severe weather conditions, natural disasters, terrorist activities, financial crises, political crises or other major events, or the prospect of these events;
- uncertainty in the global trade environment, including the imposition or threatened imposition of tariffs or other trade policies and any retaliatory measures imposed by impacted exporting countries;
- our ability to successfully implement our strategic plan;
- difficulties arising from changes and turnover in company leadership or other key positions;
- our ability to attract, develop and retain qualified associates and manage labor-related costs;
- our dependence on traffic to our stores and the availability of suitable store locations on satisfactory terms;
- our ability to successfully operate and expand internationally and related risks;
- the operations and performance of our franchisees, licensees, wholesalers and joint venture partners;
- our ability to successfully operate and grow our direct channel business;
- our ability to protect our reputation and the image and value of our brands;
- our ability to attract customers with marketing, advertising and promotional programs;
- the highly competitive nature of the retail industry and the segments in which we operate;
- consumer acceptance of our products and our ability to manage the life cycle of our brands, remain current with fashion trends, and develop and launch new merchandise and product lines successfully;
- our ability to integrate acquired businesses and realize the benefits and synergies sought with such acquisitions;
- our ability to incorporate artificial intelligence and other emerging technologies into our business operations successfully and ethically while effectively managing the associated risks;
- our ability to source materials and produce, distribute and sell merchandise on a global basis, including risks related to:
- political instability and geopolitical conflicts;
- environmental hazards, severe weather and natural disasters;
- significant health hazards and pandemics;
- delays or disruptions in shipping and transportation and related pricing impacts;
- foreign currency exchange rate fluctuations; and
- disruption due to labor disputes;
- our geographic concentration of production and distribution facilities in central Ohio and Southeast Asia;
- the ability of our vendors to manufacture and deliver products in a timely manner, meet quality standards and comply with applicable laws and regulations;
- fluctuations in freight, product input and energy costs;
- our and our third-party service providers’ ability to implement and maintain information technology systems and to protect associated data and system availability against cybersecurity incidents and disruptions or failures of systems;
- our ability to maintain the security and privacy of customer, associate, third-party and company information;
- stock price volatility;
- shareholder activism matters;
- our ability to maintain our credit ratings;
- our ability to comply with legal and regulatory requirements; and
- legal, tax, trade and other regulatory matters.
All forward-looking statements are made only as of the date of this press release. Except as may be required by law, we assume no obligation and do not intend to make publicly available any update or other revisions to any of the forward-looking statements contained in this press release to reflect circumstances existing after the date of this press release or to reflect the occurrence of future events, even if experience or future events make it clear that any expected results expressed or implied by those forward-looking statements will not be realized. Additional information regarding these and other factors can be found in “Item 1A. Risk Factors” in our 2024 Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 21, 2025.
For further information, please contact:
| Victoria’s Secret & Co.: | |
| Investor Relations: Priya Trivedi investorrelations@victoria.com | Media Relations: Brooke Wilson communications@victoria.com |
Total Net Sales (Millions):
| Fourth Quarter 2025 | Fourth Quarter 2024 | % Inc/ (Dec) | Full Year 2025 | Full Year 2024 | % Inc/ (Dec) | ||||||||||||||||||
| Stores – North America | $ | 1,220.2 | $ | 1,160.1 | 5.2 | % | $ | 3,544.5 | $ | 3,427.3 | 3.4 | % | |||||||||||
| Direct1 | 773.2 | 752.2 | 2.8 | % | 2,041.5 | 2,042.2 | 0.0 | % | |||||||||||||||
| International2 | 276.4 | 193.2 | 43.1 | % | 967.4 | 760.1 | 27.3 | % | |||||||||||||||
| Total | $ | 2,269.8 | $ | 2,105.5 | 7.8 | % | $ | 6,553.4 | $ | 6,229.6 | 5.2 | % | |||||||||||
1 – Full year 2025 results include an approximately
2 – Results include consolidated joint venture sales in China, royalties associated with franchise partners sales, wholesale sales, and beginning in the third quarter of 2025 direct sales in the European Union. Prior to the third quarter of 2025, direct sales in the European Union are reported in our Direct channel. Direct sales in the European Union reported in the International channel were
Comparable Sales Increase (Decrease):
| Fourth Quarter 2025 | Fourth Quarter 2024 | Full Year 2025 | Full Year 2024 | ||||||||||||
| Stores and Direct1 | 8 | % | 5 | % | 5 | % | 0 | % | |||||||
| Stores Only2 | 7 | % | 3 | % | 4 | % | (2 | %) | |||||||
NOTE: Please refer to our filings with the Securities and Exchange Commission for further discussion regarding our comparable sales calculation.
1 – Results include company-operated stores in the U.S. and Canada, consolidated joint venture stores in China and direct sales.
2 – Results include company-operated stores in the U.S. and Canada and consolidated joint venture stores in China.
Total Stores:
| Stores at 2/1/25 | Opened | Closed | Stores at 1/31/26 | |
| Company-Operated: | ||||
| U.S. | 782 | 15 | (31) | 766 |
| Canada | 24 | 1 | (1) | 24 |
| Subtotal Company-Operated | 806 | 16 | (32) | 790 |
| China Joint Venture: | ||||
| Beauty & Accessories1 | 30 | - | (10) | 20 |
| Full Assortment | 40 | 6 | (1) | 45 |
| Subtotal China Joint Venture | 70 | 6 | (11) | 65 |
| Partner-Operated: | ||||
| Beauty & Accessories | 324 | 52 | (26) | 350 |
| Full Assortment | 181 | 37 | (6) | 212 |
| Subtotal Partner-Operated | 505 | 89 | (32) | 562 |
| Adore Me | 6 | - | (3) | 3 |
| Total | 1,387 | 111 | (78) | 1,420 |
1 – Includes six partner-operated stores at 1/31/26.
| VICTORIA'S SECRET & CO. | |||||||
| CONSOLIDATED STATEMENTS OF INCOME | |||||||
| THIRTEEN WEEKS ENDED JANUARY 31, 2026 AND FEBRUARY 1, 2025 | |||||||
| (Unaudited) | |||||||
| (In thousands except per share amounts) | |||||||
| 2025 | 2024 | ||||||
| Net Sales | $ | 2,269,804 | $ | 2,105,501 | |||
| Costs of Goods Sold, Buying and Occupancy | (1,414,809 | ) | (1,292,068 | ) | |||
| Gross Profit | 854,995 | 813,433 | |||||
| General, Administrative and Store Operating Expenses | (626,025 | ) | (545,747 | ) | |||
| Operating Income | 228,970 | 267,686 | |||||
| Interest Expense | (16,808 | ) | (20,147 | ) | |||
| Other Income (Loss) | 3,240 | (3,258 | ) | ||||
| Income Before Income Taxes | 215,402 | 244,281 | |||||
| Provision for Income Taxes | 15,981 | 50,363 | |||||
| Net Income | 199,421 | 193,918 | |||||
| Less: Net Income Attributable to Noncontrolling Interest | 15,787 | 506 | |||||
| Net Income Attributable to Victoria's Secret & Co. | $ | 183,634 | $ | 193,412 | |||
| Net Income Per Diluted Share Attributable to Victoria's Secret & Co. | $ | 2.14 | $ | 2.33 | |||
| Weighted Average Shares Outstanding | 85,850 | 83,148 | |||||
| VICTORIA'S SECRET & CO. | |||||||
| CONSOLIDATED STATEMENTS OF INCOME | |||||||
| FIFTY-TWO WEEKS ENDED JANUARY 31, 2026 AND FEBRUARY 1, 2025 | |||||||
| (Unaudited) | |||||||
| (In thousands except per share amounts) | |||||||
| 2025 | 2024 | ||||||
| Net Sales | $ | 6,553,409 | $ | 6,229,560 | |||
| Costs of Goods Sold, Buying and Occupancy | (4,169,030 | ) | (3,945,159 | ) | |||
| Gross Profit | 2,384,379 | 2,284,401 | |||||
| General, Administrative and Store Operating Expenses | (2,113,737 | ) | (1,974,800 | ) | |||
| Operating Income | 270,642 | 309,601 | |||||
| Interest Expense | (70,080 | ) | (85,678 | ) | |||
| Other Income (Loss) | 7,460 | (2,920 | ) | ||||
| Income Before Income Taxes | 208,022 | 221,003 | |||||
| Provision for Income Taxes | 19,142 | 52,178 | |||||
| Net Income | 188,880 | 168,825 | |||||
| Less: Net Income Attributable to Noncontrolling Interest | 28,022 | 3,481 | |||||
| Net Income Attributable to Victoria's Secret & Co. | $ | 160,858 | $ | 165,344 | |||
| Net Income Per Diluted Share Attributable to Victoria's Secret & Co. | $ | 1.93 | $ | 2.05 | |||
| Weighted Average Shares Outstanding | 83,425 | 80,726 | |||||
| VICTORIA'S SECRET & CO. | |||||||||||||||
| NON-GAAP FINANCIAL INFORMATION | |||||||||||||||
| PERIODS ENDED JANUARY 31, 2026 AND FEBRUARY 1, 2025 | |||||||||||||||
| (Unaudited) | |||||||||||||||
| (In thousands except per share amounts) | |||||||||||||||
| In addition to our results provided in accordance with GAAP, provided below are non-GAAP financial measures that present operating income, net income attributable to Victoria's Secret & Co. and net income per diluted share attributable to Victoria's Secret & Co. on an adjusted basis for the reported periods provided in this release, which remove certain non-recurring, infrequent or unusual items that we believe are not indicative of the results of our ongoing operations due to their size and nature. The intangible asset amortization excluded from these non-GAAP financial measures is excluded because the amortization, unlike the related revenue, is not affected by operations of any particular period unless an intangible asset becomes impaired or the estimated useful life of an intangible asset is revised. We use adjusted financial information as key performance measures of our results of operations for the purpose of evaluating performance internally. These non-GAAP measurements are not intended to replace the presentation of our financial results in accordance with GAAP. Instead, we believe that the presentation of adjusted financial information provides additional information to investors to facilitate the comparison of past and present operations. Further, our definition of non-GAAP financial measures may differ from similarly titled measures used by other companies. The tables below reconcile the most directly comparable GAAP financial measure to each non-GAAP financial measure. | |||||||||||||||
| Fourth Quarter | Year-to-Date | ||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||
| Reconciliation of Reported to Adjusted Operating Income | |||||||||||||||
| Reported Operating Income - GAAP | $ | 228,970 | $ | 267,686 | $ | 270,642 | $ | 309,601 | |||||||
| Adore Me Long-Lived Assets Impairment (a) | 119,600 | - | 119,600 | - | |||||||||||
| Interchange Fee Settlement (b) | (69,155 | ) | - | (69,155 | ) | - | |||||||||
| Adore Me and DailyLook Fulfillment Center Restructuring (c) | 36,342 | - | 36,342 | - | |||||||||||
| Amortization of Intangible Assets (e) | - | 6,284 | 18,852 | 25,136 | |||||||||||
| Organizational Restructuring and Other One-time Items (f) | - | - | 20,328 | 12,548 | |||||||||||
| Adore Me Acquisition-related Items (g) | - | 3,714 | 5,920 | 4,238 | |||||||||||
| Equity Method Investment Impairment and Related Charges (h) | - | 21,614 | - | 21,614 | |||||||||||
| Adjusted Operating Income | $ | 315,757 | $ | 299,298 | $ | 402,529 | $ | 373,137 | |||||||
| Reconciliation of Reported to Adjusted Net Income Attributable to Victoria's Secret & Co. | |||||||||||||||
| Reported Net Income Attributable to Victoria's Secret & Co. - GAAP | $ | 183,634 | $ | 193,412 | $ | 160,858 | $ | 165,344 | |||||||
| Adore Me Long-Lived Assets Impairment (a) | 119,600 | - | 119,600 | - | |||||||||||
| Interchange Fee Settlement (b) | (69,155 | ) | - | (69,155 | ) | - | |||||||||
| Adore Me and DailyLook Fulfillment Center Restructuring (c) | 36,342 | - | 36,342 | - | |||||||||||
| China Deferred Tax Asset Valuation Reserve Release (d) | 11,542 | - | 11,542 | - | |||||||||||
| Amortization of Intangible Assets (e) | - | 6,284 | 18,852 | 25,136 | |||||||||||
| Organizational Restructuring and Other One-time Items (f) | - | - | 20,328 | 12,548 | |||||||||||
| Adore Me Acquisition-related Items (g) | - | 4,944 | 5,920 | 9,244 | |||||||||||
| Equity Method Investment Impairment and Related Charges (h) | - | 21,614 | - | 21,614 | |||||||||||
| Tax Effect of Adjusted Items | (44,381 | ) | (9,826 | ) | (54,175 | ) | (16,359 | ) | |||||||
| Adjusted Net Income Attributable to Victoria's Secret & Co. | $ | 237,582 | $ | 216,428 | $ | 250,112 | $ | 217,527 | |||||||
| Reconciliation of Reported to Adjusted Net Income Per Diluted Share Attributable to Victoria's Secret & Co. | |||||||||||||||
| Reported Net Income Per Diluted Share Attributable to Victoria's Secret & Co. - GAAP | $ | 2.14 | $ | 2.33 | $ | 1.93 | $ | 2.05 | |||||||
| Adore Me Long-Lived Assets Impairment (a) | 1.05 | - | 1.08 | - | |||||||||||
| Interchange Fee Settlement (b) | (0.60 | ) | - | (0.62 | ) | - | |||||||||
| Adore Me and DailyLook Fulfillment Center Restructuring (c) | 0.32 | - | 0.33 | - | |||||||||||
| China Deferred Tax Asset Valuation Reserve Release (d) | (0.14 | ) | - | (0.14 | ) | - | |||||||||
| Amortization of Intangible Assets (e) | - | 0.06 | 0.17 | 0.23 | |||||||||||
| Organizational Restructuring and Other One-time Items (f) | - | - | 0.19 | 0.13 | |||||||||||
| Adore Me Acquisition-related Items (g) | - | 0.02 | 0.07 | 0.08 | |||||||||||
| Equity Method Investment Impairment and Related Charges (h) | - | 0.20 | - | 0.21 | |||||||||||
| Adjusted Net Income Per Diluted Share Attributable to Victoria's Secret & Co. | $ | 2.77 | $ | 2.60 | $ | 3.00 | $ | 2.69 | |||||||
Adjusted results exclude the following items:
| a) | In the fourth quarter and year-to-date 2025, we recognized pre-tax expense of |
| b) | In the fourth quarter and year-to-date 2025, we recognized a pre-tax gain, net of related administrative expenses, of |
| c) | In the fourth quarter and year-to-date 2025, we recognized a pre-tax charge of |
| d) | In the fourth quarter and year-to-date 2025, we recognized a tax benefit of |
| e) | Year-to-date 2025, we recognized amortization expense of |
| f) | Year-to-date 2025, we recognized pre-tax charges of |
| g) | Year-to-date 2025, we recognized pre-tax expense of |
| h) | In the fourth quarter of 2024, we recognized pre-tax expense of |
