Victoria's Secret & Co. (NYSE:VSCO) reported fourth quarter results that topped Wall Street expectations and issued a stronger-than-anticipated outlook for the year ahead, as the lingerie retailer pointed to continued momentum from its turnaround strategy.
For the quarter ended January 31, the company reported adjusted earnings of $2.77 per diluted share, above analysts’ expectations of $2.52.
Revenue came in at $2.27 billion, exceeding the $2.23 billion consensus estimate. Net sales increased 8% from a year earlier, while comparable sales also rose 8% during the quarter.
Victoria's Secret CEO Hillary Super said the company saw broad-based strength during the holiday period. “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,” Super said in a statement.
“In the quarter, our customer responded enthusiastically to our product and marketing, as demonstrated by growing new customer acquisition and increased AURs.”
For the full fiscal year 2025, Victoria’s Secret reported net sales of $6.55 billion, up 5% from $6.23 billion in fiscal 2024. Comparable sales also increased 5% for the year.
Looking ahead, the company said it expects first-quarter sales to range between $1.49 billion and $1.53 billion, above analysts’ expectations of about $1.42 billion. Operating income for the quarter is projected to be between $32 million and $42 million.
For fiscal 2026, Victoria’s Secret forecast net sales of $6.85 billion to $6.95 billion, compared with $6.55 billion in fiscal 2025 and above market expectations of roughly $6.8 billion. The company expects operating income to be between $430 million and $460 million for the year.
Despite the strong report and upbeat guidance, shares of Victoria’s Secret traded down about 12% shortly after Thursday’s opening bell, likely reflecting profit taking after the stock’s rally in recent months.