Key Takeaways:
- Victoria's Secret shares surged 45% to a record high on Tuesday
- Q1 revenue rose 15% to $1.56 billion, beating analyst estimates
- The retailer raised its full-year sales and profit guidance
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Victoria's Secret surges 45% to record after earnings beat
Victoria's Secret & Co. reported Q1 revenue of $1.56 billion, up 15% from a year earlier and above the $1.55 billion analysts had projected, sending shares up 45% to an all-time high.
"We saw double-digit growth in Pink, Victoria's Secret and beauty across digital, across stores, across international," Chief Executive Officer Hillary Super said in an interview. "Very, very consistent business."
Adjusted earnings per share came in at 60 cents, more than double the 32-cent consensus estimate compiled by Yahoo Finance and swinging from a 2-cent loss a year earlier. Comparable sales rose 13%, rebounding from a 1% decline in the same period last year. Net income totaled $47.7 million, compared with a $2 million loss in the year-ago quarter.
The lingerie and beauty retailer raised its full-year outlook, now expecting revenue of $7.03 billion to $7.13 billion, up from a prior range of $6.85 billion to $6.95 billion. Adjusted operating income is forecast at $550 million to $580 million, compared with the previous $430 million to $460 million. For the current quarter ending in July, the company projected revenue of $1.59 billion to $1.62 billion.
Super, who took over as CEO in September 2024, has focused on rebuilding brand identity through partnerships with K-pop group Twice, model Hailey Bieber and basketball player Angel Reese. Bras, which Super called "the heartbeat of the VS business," posted double-digit sales growth and gained market share during the quarter. Panties and sleepwear rose in the mid-teens, outpacing bras.
The results mark a sharp turnaround for a company that had struggled to regain momentum after losing cultural relevance. The guidance raise signals management expects the recovery to continue. Investors will watch the next quarterly report for evidence that the brand's renewed marketing push can sustain growth amid an activist campaign by Brett Blundy's BBRC International, which is seeking to withhold votes for two directors.
This article is for informational purposes only and does not constitute investment advice.
[1] Stock Market Today: Futures Edge Lower After Indexes Close at Fresh Records; Oil Declines After Sharp Gains; HPE, Marvell Shares Soar[2] Victoria’s Secret: Fiscal Q1 Earnings Snapshot[3] Victoria’s Secret Sales Jump 15% as Hillary Super’s Turnaround Continues[4] Victoria's Secret’s (NYSE:VSCO) Q1 CY2026 sales beat estimates
