Victoria's Secret lifts annual outlook as sales growth boosts shares
Victoria's Secret is raising its full-year sales and profit guidance after reporting another quarter of revenue growth across its main brands. The update sends the retailer's shares up 34% in premarket trading on Tuesday and points to continued demand from shoppers willing to spend on discretionary products.
Highlights
- Victoria's Secret reports fourth consecutive quarter of growth with quarterly sales up 15% to $1.56 billion, above LSEG analyst estimates of $1.52 billion.
- Adjusted profit reaches 60 cents per share, doubling the expected 30 cents and driven by higher prices and reduced promotional activity.
- Victoria's Secret raises fiscal 2026 net sales outlook to $7.03–$7.13 billion and annual adjusted operating income forecast to $550–$580 million.
Quarterly performance and upgraded guidance
As reported by Reuters, the lingerie retailer says Victoria's Secret, PINK and its beauty business benefit from higher selling prices and lower promotional activity despite an uncertain tariff environment.Quarterly sales rise 15% to $1.56 billion, marking the company's fourth straight quarter of growth and exceeding analysts' estimates of $1.52 billion, according to LSEG data. Adjusted profit reaches 60 cents per share, well above expectations of 30 cents.
Victoria's Secret now expects fiscal year 2026 net sales of $7.03 billion to $7.13 billion, up from its previous forecast of $6.85 billion to $6.95 billion. The company also raises its annual adjusted operating income outlook to $550 million to $580 million from $430 million to $460 million.
Consumer spending backdrop and brand momentum
The results highlight a split in U.S. consumer spending, with higher-income shoppers continuing to buy discretionary and non-essential items while lower-income households remain under pressure from persistent inflation.Chief Executive Hillary Super says Victoria's Secret, PINK and Beauty are gaining cultural relevance and expanding their customer files, with a strong pipeline of product launches, partnerships and brand moments ahead. The company says it remains positioned to build momentum and create shareholder value.
Our earlier coverage of Dollar General’s updated fiscal 2026 outlook explained how economic uncertainty is pushing shoppers toward low-priced essentials and supporting discount retailers. We noted the company raised its earnings-per-share guidance while keeping its same-store sales growth view intact, citing factors such as tariffs, elevated gasoline prices, and labor-market uncertainty that continue to shape consumer behavior.
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