Victoria’s Secret (VSXY) earnings Q1 2026
Shoppers may be feeling pessimistic about high prices at the pump, but they’re still spending money on new bras and underwear. Victoria’s Secret.
The lingerie retailer raised its full-year forecast on Tuesday after beating past earnings forecasts in its fiscal first quarter, citing lower tariff costs and more customers willing to spend full price on its products. Shares rose nearly 40% in premarket trading.
There were “very consistent, double-digit numbers” [sales] “There are increases across Victoria’s Secret, Pink, beauty channels, digital, in-store and internationally, it’s all very positive,” CEO Hillary Super told CNBC in an interview. “Strengthening bras are one of our most important initiatives, reaching double digits” [comparable sales growth] “I think the loyalty the bra has created there and its foothold in the industry is very important.”
Super added that the company increased sales with “significantly” fewer promotions and gained market share during the quarter, especially among shoppers ages 18 to 24.
Some retailers posted strong growth in the first quarter, partly attributed to higher tax rebates. Victoria’s Secret chief financial officer Scott Sekella said while some customers have taken advantage of this extra incentive to shop at its stores, it’s a “normal amount” and trends have remained consistent so far this quarter, although tax refunds have dried up for many people.
Victoria’s Secret expects full-year sales to be between $7.03 billion and $7.13 billion, according to LSEG, well above its forecast of $6.85 billion to $6.95 billion.
The company also raised its full-year guidance for adjusted opening revenue by more than $100 million. It now expects adjusted operating income to be between $550 million and $580 million, down from its previous range of $430 million to $460 million.
Sekella said he upgraded the company’s outlook as better-than-expected sales led to stronger leverage on fixed costs, and also factored in lower tariff rates as many of President Donald Trump’s far-reaching mandates have been declared illegal.
“This is all based on the first quarter we had, the momentum we saw in the second quarter and how we feel about our back half launches,” Sekella said.
The company also issued a bullish forecast for the quarter, although some of its peers have issued conservative outlooks as they monitor whether consumers pull back on spending without the support of tax refunds. LSEG said it expects sales to be between $1.59 billion and $1.62 billion, beating expectations of $1.56 billion.
Here’s how Victoria’s Secret performed in the fiscal first quarter compared to Wall Street expectations, according to a survey of analysts conducted by LSEG:
- Earnings per share: 60 cents corrected, 30 cents expected
- Revenues: 1.56 billion dollars, while the expectation was 1.52 billion dollars
The company’s reported net income for the three months ended May 2 was $47.7 million, or 56 cents per share, compared to a loss of $1.66 million, or 2 cents per share, a year earlier. Excluding one-time restructuring costs, Victoria’s Secret had earnings per share of 60 cents.
Sales rose nearly 15% to $1.56 billion from $1.35 billion a year earlier. Comparable sales, including stores and e-commerce revenue, rose 13%, beating expectations of 11.4%, according to StreetAccount.
Victoria’s Secrets’ results represent a new milestone for the company. While Super has been with the retailer for almost two years, he said the management team he established is approaching its one-year anniversary and the results of the transformation they have been working on are starting to materialize.
“Once you get to that year, you start to combine your contributions, because you see the patterns, you see where things are going, and I think you can really create a multiplier effect in what you do,” Super said. “We’re in the early stages. I think we know very well where we’re going, and we’re even seeing new opportunities as we build out these strategies and continue to grow these businesses, and so it’s just a matter of putting those on stage and making sure we get all the muscle for the jam of what we’re doing.”
Super said that during the quarter, the company saw sales increases across all income groups, but most importantly, the most growth came from those earning under $50,000 annually and those earning over $200,000 annually; This shows that the winner is not the price or the discount, but their products.
Since taking over, Super has sought to reconnect Victoria’s Secret with its core identity—a sexy lingerie brand that offers products that are not sexy at the expense of comfort but are sensual rather than utilitarian. She worked to grow her beauty business, revitalize the Pink brand and reinvent the bra line that served as a mainstay for the company overall.
Over the past few years, Victoria’s Secret has faced a number of savvy, upstart competitors with varying views on beauty standards and criticism for perpetuating unrealistic stereotypes, particularly through its models.
Super tried to solve some of these problems while also building a business that could appeal to a new generation of shoppers.
One thing that helped the company was the large store space in shopping malls; This was also an issue that was criticized in the past.
“We are very, very good at this in real-life experience and have proven that our stores have a competitive advantage,” Super said. “This is where he wants to be and where he wants to have an experience for himself.”
