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RetailStreet Notes

Victoria’s Secret Is All About Lift, Support, and a Good CEO Fit—and the Stock Loves It

In this article

Lift, support, fit. It’s the talk of bras so it isn’t a stretch to use those words to describe what’s going on with Victoria’s Secret.

Victoria's Secret & Co. (NYSE:VSCO) could continue delivering strong earnings growth as sustained sales momentum supports margin expansion, according to Bank of America, which maintained its ‘Buy’ rating on the retailer.

Bank of America analysts wrote that recent sales trends have eased concerns about a potential slowdown following the company's first-quarter earnings beat and increased full-year guidance.

The analysts expect continued momentum to drive operating margin expansion and mid- to high-teens earnings-per-share growth over the next several years.

The firm said it believes Victoria's Secret can achieve a 10% EBIT margin by fiscal 2028 through expense leverage and a greater mix of full-price sales.

Bank of America's updated sensitivity analysis indicated that 8% total sales growth and a 10% operating margin in fiscal 2027 would produce earnings per share about 15% above its base-case forecast, which assumes 6% sales growth and a 9% operating margin.

The analysts also highlighted store productivity initiatives as a longer-term opportunity to improve profitability. Victoria's Secret has been remodeling stores under its "Store of the Future" concept, with remodeled locations generating double-digit sales increases despite operating with smaller footprints. Management aims to remodel half of its global store base by the end of fiscal 2027, leaving additional room for productivity gains beyond that period.

Bank of America maintained its $95 price target on the shares, citing expectations for several years of mid- to high-teens earnings growth driven by operating margin expansion.

Shares traded hands at about $80 on Wednesday afternoon, up about 48% so far in 2026.

Net Sales Increased 15% to $1.560 Billion, Exceeding GuidanceOperating Income Increased to $76 Million; Adjusted Operating Income of $80 Million Exceeds GuidanceVS&Co Raises Full Year 2026 Net Sales Guidance to $7.030-$7.130 Billion and Adjusted Operating Income Guidance to $550-$580 Million REYNOLDSBURG, Ohio, June 02, 2026 (GLOBE NEWSWIRE) -- Victoria’s Secret & Co. (“VS&Co” or the “Company”) (NYSE: VSXY) today reported financial results for the first quarter ended May 2, 2026.

Hillary Super, VS&Co Chief Executive Officer, said, “We delivered a very strong start to 2026, exceeding top- and bottom-line guidance and continuing the momentum we built in the back half of last year. We drove double-digit sales growth across Victoria’s Secret, PINK, and Beauty, as well as our fourth consecutive quarter of positive comps. Our customer responded strongly to our product innovation, emotionally resonant storytelling, and distinct brand projection, driving double-digit growth in new customer acquisition, increased regular-price selling, and broad-based strength across categories, channels, and geographies. These results reflect the progress we are making against our Path to Potential strategy as we continue to strengthen customer connection, build brand heat, and drive sustainable long-term growth.”

Ms. Super concluded, “We are increasingly confident in the trajectory of the business. Our teams are executing with greater precision and agility, Victoria’s Secret, PINK, and Beauty are gaining cultural relevance and expanding their customer files, and we have a strong pipeline of product launches, partnerships, and brand moments ahead. We believe we are well positioned to continue building momentum and creating shareholder value.”

Scott Sekella, VS&Co Chief Financial and Operating Officer, said, “Our first quarter results reflect disciplined execution across the business, including broad-based gross margin improvement, driven by higher regular-price selling, reduced promotions, and leveraging our buying and occupancy expenses, all despite tariff headwinds. We also delivered SG&A leverage versus last year’s first quarter and EPS growth that outpaced operating income growth. Given our strong first quarter performance and continued momentum in the business, we are raising our fiscal 2026 outlook and remain confident in our ability to drive profitable growth.”

First Quarter 2026 Results
The Company reported net sales of $1.560 billion for the first quarter of 2026, an increase of 15% compared to net sales of $1.353 billion for the first quarter of 2025 and above the previously communicated guidance range of $1.490 billion to $1.525 billion. Total comparable sales for the first quarter of 2026 increased 13%.

The Company reported operating income for the first quarter of 2026 of $76 million compared to operating income of $20 million in the first quarter of 2025. Net income was $48 million, or $0.56 per diluted share, for the first quarter of 2026 compared to net loss of $2 million, or $0.02 per diluted share, for the first quarter of 2025.

Excluding the impact of the adjusted items described at the conclusion of this press release, adjusted operating income for the first quarter of 2026 was $80 million, which was significantly above the previously communicated guidance range of $32 million to $42 million. This result compares to last year’s first quarter adjusted operating income of $32 million. Adjusted net income for the first quarter of 2026 was $51 million, or $0.60 per diluted share, which was significantly above the previously communicated guidance range of $0.20 to $0.30 per diluted share. This result compares to last year’s first quarter adjusted net income of $7 million, or $0.09 per diluted share.

Capital Allocation
The Company repurchased 2.2 million shares of the Company’s common stock for $100 million at an average price of $45.27 per share during the first quarter of 2026. The shares were repurchased under the previously announced share repurchase program approved by the Company’s Board of Directors in March 2024 which authorized the repurchase of up to $250 million of the Company’s common stock. As of May 2, 2026, $150 million remained authorized for purchase.  

Second Quarter and Full Year 2026 Outlook
The Company is forecasting net sales for the second quarter of 2026 to be in the range of $1.590 billion to $1.615 billion compared to net sales of $1.459 billion for the second quarter of 2025. At this forecasted level of net sales, operating income for the second quarter of 2026 is expected to be in the range of $90 million to $100 million compared to adjusted operating income of $55 million for the second quarter of 2025.

The Company is now forecasting fiscal year 2026 net sales to be in the range of $7.030 billion to $7.130 billion, an increase compared to the previously communicated guidance range of $6.850 billion to $6.950 billion, and compared to net sales of $6.553 billion in fiscal year 2025. At this forecasted level of net sales, the Company is now forecasting adjusted operating income for fiscal year 2026 to be in the range of $550 million to $580 million, an increase compared to previously communicated guidance range of $430 million to $460 million, and compared to fiscal year 2025 adjusted operating income of $403 million.

Adjusted Financial Information
At the conclusion of this press release, the Company has included a reconciliation of reported to adjusted results.

Quarterly Earnings Conference Call
Victoria’s Secret & Co. will conduct its first quarter earnings call at 8:30 a.m. Eastern on Tuesday, June 2, 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: VSXY) 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 approximately 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;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 and natural disasters;significant health hazards and pandemics;delays or disruptions in shipping and transportation and related pricing impacts;foreign currency exchange rate fluctuations; anddisruption due to labor disputes; our geographic concentration of production and distribution facilities in Southeast Asia and central Ohio;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;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; andlegal, 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 2025 Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 20, 2026.

Total Net Sales (Millions):

 First
Quarter
2026 First
Quarter
2025 %
Inc/
(Dec)        Stores – North America$802.8 $721.3 11.3% Direct1 469.4  433.2 8.4% International2 287.4  198.4 44.9% Total$1,559.6 $1,352.9 15.3%            1 –Beginning in the third quarter of 2025, direct sales in the European Union are reported in our International channel. 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 $17 million in the first quarter of 2026.
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 $17 million in the first quarter of 2026.

Comparable Sales Increase (Decrease):

 First
Quarter
2026 First
Quarter
2025      Stores and Direct113% (1%) Stores Only210% (1%)       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
1/31/26OpenedClosedStores at
5/2/26     Company-Operated:    U.S.7663(2)767Canada24--24Subtotal Company-Operated7903(2)791     China Joint Venture:    Beauty & Accessories120-(2)18Full Assortment453(2)46Subtotal China Joint Venture653(4)64     Partner-Operated:    Beauty & Accessories3507(8)349Full Assortment2126(2)216Subtotal Partner-Operated56213(10)565     Adore Me3--3     Total1,42019(16) 1,423      1 – Includes five partner-operated stores at 5/2/26.

     VICTORIA'S SECRET & CO.
CONSOLIDATED STATEMENTS OF INCOME (LOSS)
THIRTEEN WEEKS ENDED MAY 2, 2026 AND MAY 3, 2025
(Unaudited)
(In thousands except per share amounts)
        2026   2025 Net Sales$1,559,591  $1,352,949 Costs of Goods Sold, Buying and Occupancy (974,643)  (878,724)Gross Profit 584,948   474,225 General, Administrative and Store Operating Expenses (508,626)  (454,440)Operating Income 76,322   19,785 Interest Expense (14,933)  (17,089)Other Income 3,076   2,957 Income Before Income Taxes 64,465   5,653 Provision for Income Taxes 7,548   2,878 Net Income 56,917   2,775 Less: Net Income Attributable to Noncontrolling Interest 9,226   4,431 Net Income (Loss) Attributable to Victoria's Secret & Co.$47,691  $(1,656)Net Income (Loss) Per Diluted Share Attributable to Victoria's Secret & Co. $0.56  $(0.02)Weighted Average Shares Outstanding1 84,850   79,468      1- Reported Weighted Average Shares Outstanding in the first quarter of 2025 reflects basic shares due to the Net Loss.      VICTORIA'S SECRET & CO.NON-GAAP FINANCIAL INFORMATIONTHIRTEEN WEEKS ENDED MAY 2, 2026 AND MAY 3, 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 (loss) attributable to Victoria's Secret & Co. and net income (loss) 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 in the first quarter of 2025 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.
                    First Quarter   2026   2025 Reconciliation of Reported to Adjusted Operating Income    Reported Operating Income - GAAP $76,322  $19,785 Organizational Restructuring and Other One-time Items (a)  3,761   5,597 Amortization of Intangible Assets (b)  -   6,284 Adjusted Operating Income $80,083  $31,666      Reconciliation of Reported to Adjusted Net Income (Loss) Attributable to Victoria's Secret & Co.  Reported Net Income (Loss) Attributable to Victoria's Secret & Co. - GAAP $47,691  $(1,656)Organizational Restructuring and Other One-time Items (a)  3,761   5,597 Amortization of Intangible Assets (b)  -   6,284 Tax Effect of Adjusted Items  (903)  (3,011)Adjusted Net Income Attributable to Victoria's Secret & Co. $50,549  $7,214      Reconciliation of Reported to Adjusted Net Income (Loss) Per Diluted Share Attributable to Victoria's Secret & Co.Reported Net Income (Loss) Per Diluted Share Attributable to Victoria's Secret & Co. - GAAP $0.56  $(0.02)Organizational Restructuring and Other One-time Items (a)  0.04   0.05 Amortization of Intangible Assets (b)  -   0.06 Adjusted Net Income Per Diluted Share Attributable to Victoria's Secret & Co. $0.60  $0.09       Adjusted results exclude the following items:

a)   In the first quarter of 2026 and 2025, we recognized pre-tax net expense of $3.8 million and $5.6 million ($2.9 million and $4.2 million net of tax expense of $0.9 million and $1.4 million, respectively), $2.0 million and $1.8 million included in buying and occupancy expense and $1.8 million and $3.8 million included in general, administrative and store operating expense, related to activities to continue to restructure our executive leadership team and organizational structure, as well as other one-time items.

b)   In the first quarter of 2025, we recognized amortization expense of $6.3 million ($4.7 million net of tax expense of $1.6 million) included in general, administrative and store operating expense, related to our definite-lived intangible assets.

VICTORIA'S SECRET & CO. FORECASTED NON-GAAP FINANCIAL INFORMATION FORECASTED FULL YEAR ENDING JANUARY 30, 2027 (Unaudited) (In millions except per share amounts)      Forecasted
 Full Year
 2026
Reconciliation of Forecasted GAAP to Adjusted Operating Income   Forecasted Operating Income - GAAP$546 to 576 Organizational Restructuring and Other One-time Item (a) 4 Forecasted Adjusted Operating Income$550 to 580     Reconciliation of Forecasted GAAP to Adjusted Net Income Attributable to Victoria's Secret & Co. Forecasted Net Income Attributable to Victoria's Secret & Co. - GAAP$362 to 382 Organizational Restructuring and Other One-time Item (a) 4 Tax Effect of Adjusted Items (1)Forecasted Adjusted Net Income Attributable to Victoria's Secret & Co.$365 to 385     Reconciliation of Forecasted GAAP to Adjusted Net Income Per Diluted Share Attributable to Victoria's Secret & Co. Forecasted Net Income Per Diluted Share Attributable to Victoria's Secret & Co. - GAAP$4.31 to 4.56 Organizational Restructuring and Other One-time Item (a) 0.04 Forecasted Adjusted Net Income Per Diluted Share Attributable to Victoria's Secret & Co.$4.35 to 4.60      Adjusted forecasted results exclude the following item:

a)   In the first quarter of 2026, we recognized pre-tax net expense of $3.8 million ($2.9 million net of tax expense of $0.9 million), $2.0 million included in buying and occupancy expense and $1.8 million included in general, administrative and store operating expense, related to activities to continue to restructure our executive leadership team and organizational structure, as well as another one-time item.

The retailer swung to a $47.7 million profit in the first quarter, from a $1.7 million loss a year earlier.

The lingerie and apparel retailer swung to a $47.7 million profit in the first quarter from a $1.7 million loss a year earlier, and raised its full-year outlook.

$20 looks like a good fit for The Gap after XL earnings beatVictoria's Secret & Co. NYSE: VSCO reported a stronger-than-expected first quarter of fiscal 2026, with management citing broad-based growth across Victoria's Secret, PINK and Beauty, stronger customer acquisition and benefits from a more disciplined promotional strategy.

Chief Executive Officer Hillary Super said the company’s momentum from the second half of 2025 continued into the quarter ended May 2, 2026. Total comparable sales increased 13%, marking the company’s fourth consecutive quarter of positive comps, while total sales rose 15%.

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Nordstrom's Earnings Beat, A Rally In The Making“The strength was broad-based across the business,” Super said. She said Victoria’s Secret, PINK and Beauty each delivered double-digit sales growth, with gains across channels and geographies.

Chief Financial and Operating Officer Scott Sekella said first-quarter net sales were $1.56 billion, up $207 million from the prior year. Adjusted operating income rose 153% to $80 million, and adjusted earnings per share increased more than 500% to $0.60. Management said those results exceeded the high end of the company’s guidance for both sales and profit.

Sales Growth Driven by Bras, PINK and Beauty Victoria's Secret Turnaround Went Stealthy, Financials ShowSuper said the company is a little more than a year into its “Path to Potential” strategy, which focuses on strengthening bra authority, recommitting to PINK, growing Beauty and evolving brand marketing and go-to-market execution.

In the bra business, sales grew in the low double digits, with strength across silhouettes and price tiers. Super said bras created a halo effect across the Victoria’s Secret brand, with panties and sleep each up in the mid-teens. She said the company has spent the past 18 months refining its top 10 bra frames, improving fit, comfort and styling while creating room for innovation in areas such as bra tops, bralettes and online bras.

Super highlighted the relaunch of the Signature collection, including the company’s top-selling T-shirt bra, and the launch of the Invisible Strapless collection, which was supported by a campaign starring Angel Reese.

PINK delivered low double-digit growth in the quarter, driven by strength in core apparel and intimates, improved regular-price selling and stronger engagement with younger customers. Super said the brand is increasingly standing on its own and is benefiting from newness, fashion-led assortments and cultural relevance.

“We are really studying her deeply to understand how she lives her life, what the moments that matter are, and what's important to her in a brand,” Super said during the question-and-answer session, referring to PINK’s focus on the 18-to-24-year-old customer.

Beauty also posted low double-digit growth, led by fine fragrance and the Mist collection. Super said the company is integrating Beauty more closely into broader brand campaigns and using more targeted marketing around key gifting periods.

Valentine’s Day and Marketing Campaigns Support Momentum Management pointed to Valentine’s Day as one of the quarter’s major brand moments. Super said the company delivered double-digit growth across Victoria’s Secret, PINK and Beauty during the Valentine’s Day period, with positive comps in key gifting categories. She said February growth was the first for the company in eight years.

For Victoria’s Secret, the company used a campaign with Hailey Bieber and a more fashion-forward assortment. For PINK, it partnered again with the K-pop group TWICE following the response to the group’s appearance at the fashion show. Super said the campaign drove more than 2 billion impressions during the Valentine’s Day period.

The company also launched “Angels Among Us,” a nationwide search for the next Angel. Super said more than 100,000 aspiring Angels participated in the application process, generating more than 1.7 billion media impressions. The company plans to share participants’ stories in the months leading up to its fashion show this fall.

Super said customer engagement is rising across channels, with the company seeing double-digit gains in new customer acquisition and file growth across age and income cohorts. She said the strongest customer growth came from households earning under $50,000 annually and over $200,000.

Margins Benefit From Less Promotion Sekella said the company’s “promo detox” strategy continued to support margins. First-quarter adjusted gross margin dollars rose 23% to $587 million, while adjusted gross margin rate expanded 240 basis points to 37.6% from 35.2% a year earlier. He said the improvement came despite about $14 million, or 90 basis points, of incremental net tariff pressure.

The margin gains were driven by higher merchandise margins, a greater mix of regular-price selling, fewer promotions and leverage on buying and occupancy expenses from higher sales, Sekella said. Average unit retail was up in the mid-single digits in the quarter.

Adjusted SG&A expenses were $507 million, with the SG&A rate improving slightly to 32.5% from 32.8% a year earlier. Sekella said expense leverage was aided by the sales beat and ongoing expense management, partly offset by higher incentive compensation and investments in store labor and customer-facing initiatives.

The company repurchased 2.2 million shares for $100 million during the quarter at an average price of about $45 per share. Sekella said $150 million remained under the company’s $250 million repurchase authorization approved in March 2024.

Company Raises Fiscal 2026 Outlook Victoria’s Secret raised its full-year outlook following the first-quarter outperformance and continued momentum into the second quarter. The company now expects fiscal 2026 net sales of $7.03 billion to $7.13 billion, up from prior guidance of $6.85 billion to $6.95 billion. That represents expected growth of 7% to 9% compared with fiscal 2025 net sales of $6.553 billion.

Adjusted operating income is now expected to range from $550 million to $580 million, up $120 million at both ends of the prior range. Sekella said $55 million of the increase reflects underlying business strength and top-line expansion, while $65 million reflects more favorable net tariff impacts than previously expected.

The company raised its adjusted earnings-per-share forecast to $4.35 to $4.60, compared with prior guidance of $3.20 to $3.45 and fiscal 2025 adjusted EPS of $3.00.

For the second quarter, management expects net sales of $1.59 billion to $1.615 billion, representing growth of about 9% to 11% from the prior year. Operating income is expected to range from $90 million to $100 million, and adjusted EPS is expected to be $0.65 to $0.75.

International Business and Ticker Change Sekella said international sales grew 45% in the first quarter, including mid-teens retail comp growth. Adjusting for a reporting shift tied to European digital sales, international sales grew 36%. Management said China remained a key driver, particularly in digital channels supported by social selling.

Super also said the company began trading under a new ticker symbol, VSXY, on the day of the call. She said the ticker reflects the company’s evolution and its focus on its brand identity.

During the Q&A session, management addressed several topics, including marketing investment, customer retention, Beauty growth, sports bras and tariffs. Sekella said the company is assuming 10% tariffs through the end of July and a return to 20% tariff rates for the rest of the year, while also noting that gross tariffs remain a headwind even with mitigation efforts.

Super said the company’s focus remains on product, marketing and customer experience. “More people are engaging with our brands, talking about our brands, and participating in our brand moments,” she said. “That growing engagement is creating a multiplier effect across the business.”

About Victoria's Secret & Co. NYSE: VSCOVictoria's Secret & Co is a leading designer, manufacturer and marketer of intimate apparel, beauty products and accessories for women. The company operates a portfolio of brands that includes Victoria's Secret, renowned for its lingerie, bras and sleepwear; PINK, a line targeting younger consumers with activewear and lifestyle products; and Victoria's Secret Beauty, offering fragrances, cosmetics and personal care items. Products are sold through retail stores as well as direct-to-consumer channels, including e-commerce platforms and mobile applications.

The origins of Victoria's Secret date back to 1977, when founders Roy and Gaye Raymond opened the first store in San Francisco.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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Key Takeaways GOOGL Borrows $80B to Buy More AIJOLTS Data Expected In-Line with March: 6.9M OpeningsDG & VSCO Post Q1 Earnings, PANW & ULTA After the Close Tuesday, June 2nd, 2026

Pre-market futures are taking a breather on the major indexes this morning, all but the small-cap Russell 2000, which has popped its head into the green after lagging the past couple trading sessions. The Dow is -225 points at this hour, -0.44%, the S&P 500 -17 points, -0.23% and the Nasdaq -45, -0.15%. The Russell is +1 point, +0.05%.

AI Bull Run Seeing Richest Companies Borrowing to Buy More
We won’t call this a trend just yet, but following NVIDIA’s (NVDA - Free Report) recent announcement that they are loaning companies the capital to buy their AI chips, this morning we see Alphabet (GOOGL - Free Report) raising $80 billion to finance more AI investment. In terms of customer-facing companies successfully employing AI, Alphabet may have no competition here in the first half of 2026.

Half of this $80 billion will consist of at-the-market moves on Class A and C shares; $10 billion will come from private funding via Berkshire Hathaway (BRK.B - Free Report) . The company said AI demand is exceeding its current available supply. Keep in mind, Alphabet is a $4.5 TRILLION company by market cap; that it feels it needs to go to debt markets to raise funds for AI is, let’s say, curious. It might be important to see if other tech giants follow suit.

Q1 Earnings Season Nearly Tapped: DG, VSCO Report
Ahead of today’s open, Dollar General (DG - Free Report) reported mixed Q1 results. Earnings of $2.00 per share outpaced the Zacks consensus of $1.89, while revenues of $10.79 billion came in -0.33% below projections. However, the company raised full-year forecasts, and shares are up +5% on the news (after tumbling -17% year to date). For more on DG’s earnings, click here.

Here’s a blast from the past: Victoria’s Secret reported Q1 numbers this morning, posting earnings of $0.60 per share versus expectations of $0.29 — for a booming +108.7% positive surprise. Revenues of $1.56 billion in the quarter outperformed estimates by +2%. This is actually the 10th-straight earnings beat for the women’s intimates firm, and the company raised revenue guidance. For more on VSCO’s earnings, click here.

After today’s close, cybersecurity major Palo Alto Networks (PANW - Free Report) is expected to report +1.28% gains on earnings year over year, and +28.58% on revenues. Ulta Beauty (ULTA - Free Report) is anticipated to post +2.99% earnings growth on +9.28% in revenues, year over year. The cosmetic supply giant’s average earnings beat over the past four quarters is +11%.

JOLTS Numbers for April After the Open
At 10am ET, the latest Job Openings and Labor Turnover Survey (JOLTS) report comes out. Expectations are for job openings to remain in line with the prior month, around 6.9 million. (The near-term low was 6.55 million in December of 2025, and the high was 7.31 million in May of last year.) Last time around, a big drop in Professional/Business Services jobs (-318K year over year) was key; of the four main regions, only the Northeast saw job gains in March.

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Published in artificial-intelligence earnings staffing

Victoria’s Secret’s embrace of its sexy roots powered strong sales and a huge spike in its stock on Tuesday — a turnaround from weak profits blamed on its doomed attempt at going woke.

A strong earnings report drove the company’s stock 47% higher on Tuesday.

The 49 year-old retailer notched a 15% sales increase in the first quarter and raised its full-year guidance.

Victoria’s Secret’s shares are soaring by more than 45% on June 2 on its strong financial results. Christopher Sadowski “We are increasingly confident in the trajectory of the business,” CEO Hillary Super said in a statement.

She’s been spearheading Victoria’s Secret’s return to its sultry origins after a woke rebrand during the #MeToo movement alienated loyal customers. 

Bra sales are now driving the business, Super said, with customers often adding other items to their purchases and returning to stores more frequently.

At the same time, 19% of the company’s tradeable shares are shorted, according to a Bloomberg report that cited data from S3 Partners, making the stock more prone to sharp swings.

The company said Tuesday that it repurchased 2.2 million shares of its stock for $100 million at an average price of $45.27 in the first quarter.

The past year has seen Victoria’s Secret stock — which now trades under the ticker VSXY, part of its recent rebrand — spike about 284%.

Chief executive, Hillary Super, is leaning into marketing that taps Victoria’s Secret’s sex appeal. Getty Images Super’s been trying to strike a middle ground between ultra-sexy and annoyingly woke, following product misfires and customer disgust at revelations over longtime chairman Les Wexner’s Epstein ties.

Previous management shied away from the company’s DNA, going so far as to cancel its iconic fashion show. After a predecessor brought the show back, Super is focusing on products like a new underwire bra with extra-comfy fabric. And last year, she launched the company’s “Unapologetically Sexy” campaign.

The iconic Victoria’s Secret fashion show was canceled for five years. Getty Images for Victoria's Secret Revenues for the quarter ended May 2 increased to $1.56 billion from $1.35 billion from a year ago while the company believes its sales for the year will increase to as much as $7.13 billion from a previous high of $6.95 billion.

HomeIndustriesRetail/WholesaleEarnings ResultsEarnings ResultsLingerie retailer’s shares jump 47% on TuesdayLast Updated: June 2, 2026 at 6:27 p.m. ET
First Published: June 2, 2026 at 3:34 p.m. ET

Victoria’s Secret has said that the turnaround it has been working on over the past year depends on making its bras better. On Tuesday, there were signs those efforts are paying off — in a big way.

Shares VSXY of the maker of bras, lingerie and sleepwear rocketed 47% higher, trading at around $80, for a record close and their biggest percentage gain ever, after the company raised its full-year forecast and highlighted bigger across-the-board gains with customers so far this year.

Since the 2025 Victoria's Secret Fashion Show held at Steiner Studios the lingerie brand's share price has soared. (Photo by Gilbert Flores/Variety via Getty Images)

Variety via Getty Images

Victoria’s Secret has delivered one of its strongest quarterly performances in years, signaling that the retailer’s ongoing transformation efforts may finally be gaining traction in an increasingly competitive lingerie market.

The company reported first quarter revenues of $1.56 billion for the period through May 2, a 15% increase from the previous year and ahead of Wall Street expectations, which saw shares soar by nearly 50%. Comparable sales rose 13%, marking the fourth consecutive quarter of positive growth and underscoring improving consumer demand across its core businesses.

Profitability also improved sharply. Victoria’s Secret posted net income of $48 million, or $0.56 per diluted share, in sharp contrast with a net loss of $2 million a year earlier. Adjusted earnings reached $0.60 per share, significantly ahead of analyst forecasts.

The results prompted management to raise its outlook for both the current quarter and the full fiscal year. The company now expects annual sales of between $7.03 billion and $7.13 billion, up from its previous forecast range of $6.85 billion to $6.95 billion. Adjusted operating income is projected to reach between $550 million and $580 million.

Chief Executive Hillary Super attributed the performance to a combination of product innovation, stronger storytelling and clearer brand positioning.

“Our customer responded strongly to our product innovation, emotionally resonant storytelling and distinct brand projection,” Super said, highlighting growth in customer acquisition, full-price selling and demand across multiple product categories and geographic markets.

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Victoria’s Secret Turns CornerThe performance marks another milestone in Victoria’s Secret’s efforts to reinvent itself after years of declining relevance. Once synonymous with the lingerie category, the retailer spent much of the past decade losing market share as consumers gravitated toward newer brands that emphasized comfort, inclusivity and body positivity.

Today, Victoria’s Secret is attempting to balance its heritage as a fashion-led lingerie brand with a more contemporary approach. The company has broadened its product assortment, diversified its marketing and focused on reaching younger shoppers without alienating its core customer base.

Victoria's Secret has a well established and international store network, Christmas themed underwear.

getty

Investments in beauty, sleepwear, activewear and digital capabilities are also helping the retailer reduce its dependence on traditional bra sales.

The broader U.S. lingerie market has changed dramatically since Victoria’s Secret dominated the category in the early 2000s. Consumers increasingly prioritize comfort, versatility and authenticity over overtly aspirational marketing and the ‘beautiful people’ image that Victoria’s Secret once epitomized.

New Competitors Ramp Up MarketBrands such as Aerie have gained market share by promoting body positivity and inclusive sizing, while Skims has reshaped consumer expectations around shapewear and essentials through celebrity-driven marketing and product innovation. Premium direct-to-consumer players including ThirdLove and Cuup have also built loyal followings by emphasizing fit, comfort and online-first shopping experiences.

At the same time, established apparel retailers have expanded their presence in intimates. Companies such as Abercrombie & Fitch and Gap Inc. have invested in adjacent categories that compete for the same consumer spending, increasing pressure on specialist lingerie retailers.

Despite these challenges, Victoria’s Secret retains significant advantages. The company operates approximately 1,420 stores across about 70 countries, giving it one of the largest physical footprints in the sector. That scale provides substantial brand visibility and omnichannel capabilities that many newer competitors lack.

Investors will be watching closely to determine whether the retailer can sustain its recent momentum. While strong sales growth and improving margins suggest the turnaround is gaining credibility, the company still faces a highly fragmented market where consumer tastes continue to evolve rapidly.

Victoria's Secret (VSCO +6.12%) is a large, well-known retailer that sells women's clothing and lingerie. It has been working on a business turnaround for several years. And it seems like investors think that the turnaround has happened after the company reported first-quarter 2026 earnings. But Wall Street analysts from Jefferies and UBS think the stock has moved too far, too fast. They might be right.

Victoria's Secret had a good quarterTo be fair, Victoria's Secret had a very strong first quarter in 2026, despite consumers becoming increasingly budget-conscious. The retailer's sales rose 15%, exceeding management's guidance. Same-store sales growth was also impressive, at 13%. Earnings per share was $0.56, up from a loss of $0.02 per share in the first quarter of 2025.

Image source: Getty Images.

The company also increased its full-year guidance. That isn't something that companies normally do after a single quarter unless they are highly confident about the future. So it's not surprising that investors would react positively. However, the magnitude of the positive reaction was a bit shocking, with the stock gapping higher by over 40%.

VSXY data by YCharts

Investors may be too excited about Victoria's SecretWhile Victoria's Secret did have a very strong first quarter, the shockingly large stock advance on the news has analysts at Jefferies and UBS worried. Essentially, the big story is that these analysts fear investors have already priced in all the good news. Thus, there's little upside opportunity ahead. That's not an unreasonable assessment of the situation.

With such a large price move, it is almost as if Wall Street is saying Victoria's Secret became a new company overnight. The rest of the year may be stronger than the company expected just three months ago when it first provided 2026 guidance, but some perspective is needed.

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For example, 2026 sales are now projected to fall between $7.03 billion and $7.13 billion, up from a range of $6.85 billion to $6.95 billion. That's less than a 3% change at both the low and high ends. Adjusted operating income is now expected to fall between $550 million and $580 million, up from a range of $430 million to $460 million. That's a more impressive change, with net income jumping nearly 28% at the low end of the range and 26% at the high end.

But the 40% one-day stock advance still dwarfs the changes the company made to its guidance. It looks like investors are pricing in more than just the first quarter's good news with this apparel stock.

It may pay to be cautious with Victoria's SecretIf you owned Victoria's Secret before the huge stock advance, you have scored a big win. That's great, but you should probably reconsider your investment thesis now. It might be time to take some profits and move on, as Jefferies and UBS seem to be suggesting.

If you didn't own the stock, the value equation changed dramatically, virtually overnight. It may not make sense to follow the crowd into the stock at this point, particularly given Wall Street’s broader concerns about inflation, energy prices, and the risk of a recession.

June 11, 2026 09:32 ET  | Source: Victoria’s Secret & Co

Outcome reflects strong shareholder support for full Board, Company’s Path to Potential strategy and continued momentum under CEO Hillary Super

Independent Chair Donna James received support from over 99% of the votes cast, excluding votes cast by BBRC, based on preliminary results

REYNOLDSBURG, Ohio, June 11, 2026 (GLOBE NEWSWIRE) -- Victoria’s Secret & Co. (“VS&Co” or the “Company”) (NYSE: VSXY) today announced that, based on the preliminary voting results at the Company’s 2026 Annual Meeting of Shareholders, shareholders voted to re-elect all nine of VS&Co’s director nominees, including Independent Chair Donna James, to the Company’s Board of Directors.

The preliminary results indicate Ms. James received the approval of over 99% of the votes cast, excluding the votes cast by BBRC International Pte Limited (“BBRC”), which waged a proxy contest against the re-election of Ms. James and voted against all Company director nominees other than CEO Hillary Super. As a percentage of all votes cast, Ms. James was re-elected with over 83% approval. Each of the Company’s other director nominees received the approval of at least 96% of the votes cast excluding votes cast by BBRC, or at least 81% of all votes cast.

VS&Co issued the following statement:

“We thank shareholders for their overwhelming support in electing all nine of the Company’s director nominees. Today’s outcome is a decisive statement of support for the current Board leadership from VS&Co’s shareholders. It also recognizes the substantial progress, outperformance and value creation delivered under the Path to Potential strategy and reaffirms shareholder confidence in our Board’s continued oversight of that strategy.

With strong momentum across the business, including recent first quarter 2026 results that significantly exceeded top- and bottom-line guidance, we are confident VS&Co is well positioned for long-term success. We appreciate the engagement and support of our shareholders and remain focused on executing our Path to Potential strategy and building on the progress we have achieved to date.”

The results announced today, as summarized in this press release, are considered preliminary and subject to change until the final voting results are tabulated and certified by the independent inspector of election. Victoria’s Secret & Co. will report the final voting results on a Form 8-K that will be filed with the Securities and Exchange Commission.

About Victoria’s Secret & Co
Victoria’s Secret & Co. (NYSE: VSXY) 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 approximately 1,420 retail stores in approximately 70 countries.

Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995
This press release contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These statements, which may be identified by 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, involve risks and uncertainties, many of which are beyond our control, and are not guarantees of future performance. Actual results may differ materially from those expressed or implied in any forward-looking statement.

Factors that could cause actual results to differ include, among others: general economic conditions, inflation, and changes in consumer confidence and consumer spending patterns; market disruptions; uncertainty in the global trade environment, including tariffs and retaliatory measures; our ability to successfully implement our strategic plan; leadership changes and turnover in key positions; our ability to source, produce, distribute and sell merchandise globally, including risks related to geopolitical conflicts, supply chain disruptions (and related pricing impacts), currency fluctuations and labor disputes; fluctuations in freight, product input and energy costs; cybersecurity risks and our ability to maintain data security and privacy; shareholder activism matters; and other risks and uncertainties described in “Item 1A. Risk Factors” in our 2025 Annual Report on Form 10-K filed with the SEC on March 20, 2026.

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 to make publicly available any update or other revisions to any of the forward-looking statements contained in this press release.

For further information, please contact:

Victoria’s Secret & Co.:

Investor Relations:
[email protected],

Media Relations:
Edelman Smithfield
[email protected]