Victoria's Secret & Co. (NYSE:VSCO) reported much stronger-than-expected first quarter results, with earnings and revenue topping Wall Street estimates and the company raising its full-year outlook.
Shares surged as much as 50% following the report, briefly trading above $80 per share.
The company reported net sales of $1.56 billion for the quarter, up 15.3% year-over-year and ahead of analyst expectations of about $1.52 billion. Comparable sales rose 13% compared with the prior year period.
Adjusted earnings per share came in at $0.60, significantly above the $0.29 to $0.32 range expected by analysts. On a reported basis, net income was $48 million, or $0.56 per diluted share, compared with a net loss of $2 million in the same quarter last year.
Operating income rose to $76 million from $20 million a year earlier. On an adjusted basis, operating income reached $80 million, above the company’s prior guidance range of $32 million to $42 million.
Following the stronger-than-expected quarter, Victoria’s Secret raised its full-year 2026 outlook. The company now expects net sales between $7.03 billion and $7.13 billion, up from a prior range of $6.85 billion to $6.95 billion. It also lifted its adjusted earnings guidance to $4.35 to $4.60 per share, compared with $3.20 to $3.45 previously.
Victoria’s Secret CEO Hillary Super said the company delivered a “very strong start to 2026,” citing broad-based growth across Victoria’s Secret, PINK, and Beauty, alongside continued customer acquisition gains and sustained momentum in full-price selling.
Jefferies analysts wrote that Victoria’s Secret delivered a clear Q1 beat with sales of $1.56 billion and adjusted EPS of $0.60, both well ahead of expectations, supported by broad-based strength across brands, channels, and geographies.
They highlighted 13% comparable sales growth and noted that operating income of $80 million significantly exceeded guidance, reflecting gross margin expansion and SG&A leverage.
Jefferies wrote that momentum was driven by healthy customer growth and improving demand trends, with double-digit increases in new customer acquisition and a fourth consecutive quarter of positive comps.
The analysts pointed to broad-based performance across Victoria’s Secret, PINK, and Beauty, with PINK highlighted as a key growth driver amid continued traction in apparel and bras.
They added that margin improvement appeared sustainable, supported by stronger full-price selling, reduced promotional activity, and operational leverage.
Jefferies also wrote that the raised full-year outlook reinforces confidence in the company’s trajectory, with improving top-line momentum, expanding margins, and tighter cost discipline supporting stronger earnings power and future reinvestment capacity.