Victoria's Secret & Co. (NYSE:VSCO) shares surged almost 17% after the retailer reported third quarter earnings that topped Wall Street expectations and updated its full-year outlook.
For the quarter ended November 1, 2025, net sales reached $1.472 billion, up 9% from $1.347 billion in the prior-year period and surpassing Wall Street estimates of roughly $1.41 billion.
Total comparable sales rose 8%, well above the consensus of 3%.
The company posted a GAAP net loss of $37 million, or $0.46 per diluted share, improving from a loss of $56 million, or $0.71 per share, in Q3 2024.
Adjusted net loss was $22 million, or $0.27 per share, ahead of the expected $0.59 per share loss.
GAAP operating loss narrowed to $19 million from $47 million a year earlier, while adjusted operating income reached breakeven, exceeding guidance for a $35 million to $55 million loss.
Gross margin expanded 170 basis points, driven by stronger full-price sales and lower promotional activity.
“We delivered a standout third quarter, with outperformance on net sales and earnings per share, exceeding the high-end of our guidance,” Victoria’s Secret CEO Hillary Super said in a statement.
“Building on the third quarter’s outperformance as well as the solid start to our fourth quarter, we are raising our full year outlook and are well positioned for a successful holiday season and finish to our fiscal 2025.”
For the full year, management now expects net sales between $6.45 billion and $6.48 billion, up from prior guidance of $6.33 billion to $6.41 billion.
Adjusted operating income is forecasted at $350 million to $375 million, versus $270 million to $320 million previously, while adjusted EPS is now projected at $2.40 to $2.65, higher than the prior $1.80 to $2.20 range.
The updated outlook reflects an estimated net tariff impact of approximately $90 million.
Analysts at Jefferies highlighted the company’s strong execution across channels and geographies, noting that the top-line growth and margin expansion were better than expected.
The analysts wrote that Victoria’s Secret’s results reflect “solid execution and momentum” and that disciplined cost management, combined with investments in product innovation and brand strength, positions the company well for the holiday season.
Jefferies reiterated its ‘Buy rating,’ with a price target of $50, implying roughly 20% upside from Victoria’s Secret’s share price at the time of writing.