VictoriaaEUR(TM)s Secret & Co. said its fourth-quarter and full-year results exceeded top- and bottom-line guidance.

Victoria's Secret & Co. ("VS&Co" or the "Company") (NYSE: VSCO) today reported financial results for the fourth quarter and fiscal year ended January 31, 2026.

Hillary Super, VS&Co Chief Executive Officer, said, "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. We drove meaningful acceleration in the second half of the year, with fourth quarter net sales of $2.270 billion and comparable sales growth of 8%. In the quarter, our customer responded enthusiastically to our product and marketing, as demonstrated by growing new customer acquisition and increased AURs. Our 2025 results reflect the progress we have made against our Path to Potential strategy as we build brand heat and powerful connections with our customers around the world."

Ms. Super concluded, "We enter fiscal 2026 from a position of strength. With a clear brand vision, a faster and more agile operating model, and a strong pipeline of product and brand moments ahead, we are confident in our ability to deliver profitable growth and create long-term shareholder value."

Scott Sekella, VS&Co Chief Financial and Operating Officer, said, "Our results reflect disciplined execution, strong margin performance, and increased operational agility. We delivered adjusted operating income of $403 million in fiscal year 2025, despite approximately $85 million of tariff pressure. Our adjusted earnings per diluted share was $3.00, representing 22% growth versus last year, excluding last year's cumulative gift card breakage adjustment. Our Path to Potential strategy is accelerating the Company's growth, reinforcing our confidence in our fiscal 2026 guidance."

Fourth Quarter 2025 Results

The Company reported net sales of $2.270 billion for the fourth quarter of 2025, an increase of 8% compared to net sales of $2.106 billion for the fourth quarter of 2024 and above our previously communicated guidance range of $2.170 billion to $2.200 billion. Total comparable sales for the fourth quarter of 2025 increased 8%.

The Company reported operating income for the fourth quarter of 2025 of $229 million compared to operating income of $268 million in the fourth quarter of 2024. Net income was $184 million, or $2.14 per diluted share, for the fourth quarter of 2025 compared to net income of $193 million, or $2.33 per diluted share, for the fourth quarter of 2024.

Excluding the impact of the adjusted items described at the conclusion of this press release, adjusted operating income for the fourth quarter of 2025 was $316 million, which was above our previously communicated guidance range of adjusted operating income of $265 million to $290 million. This result compares to last year's fourth quarter adjusted operating income of $299 million. Adjusted net income for the fourth quarter of 2025 was $238 million, or $2.77 per diluted share, which was above our previously communicated guidance range of adjusted net income per diluted share of $2.20 to $2.45. This result compares to last year's fourth quarter adjusted net income of $216 million, or $2.60 per diluted share.

As previously disclosed, last year's results include an approximately $26 million benefit to net sales, gross margin and operating income as a result of the Company's cumulative adjustment for its change in accounting estimate related to expected future redemption on outstanding gift cards.   

Excluding the impact from last year's change in accounting estimate relating to outstanding gift cards, fourth quarter 2025 net sales increased approximately 9% compared to approximately $2.080 billion last year, adjusted operating income increased approximately 16% compared to approximately $273 million last year and adjusted net income per diluted share increased approximately 18% compared to approximately $2.35 last year.

Full Year 2025 Results

The Company reported net sales of $6.553 billion for fiscal year 2025, an increase of 5% compared to net sales of $6.230 billion for fiscal year 2024 and above our previously communicated guidance range of $6.450 billion to $6.480 billion. Total comparable sales for fiscal year 2025 were 5%.

The Company reported operating income for fiscal year 2025 of $271 million compared to $310 million in fiscal year 2024. Net income was $161 million, or $1.93 per diluted share for fiscal year 2025 compared to net income of $165 million, or $2.05 per diluted share for fiscal year 2024.

Excluding the impact of the adjusted items described at the conclusion of this press release, adjusted operating income for fiscal year 2025 was $403 million, which was above our previously communicated guidance range of adjusted operating income of $350 million to $375 million. This result compares to adjusted operating income of $373 million in fiscal year 2024. Adjusted net income for fiscal year 2025 was $250 million, or $3.00 per diluted share. This result compares to adjusted net income of $218 million, or $2.69 per diluted share for fiscal year 2024.

Excluding the impact from last year's change in accounting estimate relating to outstanding gift cards, fiscal year 2025 net sales increased approximately 6% compared to approximately $6.204 billion last year, adjusted operating income increased approximately 16% compared to approximately $347 million last year and adjusted net income per diluted share increased approximately 22% compared to approximately $2.45 last year.

Full Year and First Quarter 2026 Outlook

The Company is forecasting net sales for the first quarter of 2026 to be in the range of $1.490 billion to $1.525 billion compared to net sales of $1.353 billion for the first quarter of 2025. At this forecasted level of net sales, operating income for the first quarter of 2026 is expected to be in the range of $32 million to $42 million compared to adjusted operating income of $32 million for the first quarter of 2025.

The Company is forecasting fiscal year 2026 net sales to be in the range of $6.850 billion to $6.950 billion compared to net sales of $6.553 billion in fiscal year 2025. At this forecasted level of net sales, operating income for fiscal year 2026 is expected to be in the range of $430 million to $460 million compared to fiscal year 2025 adjusted operating income of $403 million.

Strategic Alternatives for DailyLook

The Company has initiated a strategic review of DailyLook, a non-core asset within VS&Co. Acquired through the Adore Me transaction in December 2022, DailyLook has grown rapidly and achieved meaningful scale. As part of VS&Co's continued focus on its core business, the Company is evaluating opportunities to position DailyLook for long-term success. This strategic review reflects VS&Co's commitment to advancing the global growth of its two iconic brands, Victoria's Secret and PINK, through the execution of its Path to Potential strategy. Additionally, the Company continues to assess the Adore Me business and explore opportunities to optimize it within the broader portfolio.

Adjusted Financial Information

At the conclusion of this press release, we have included a reconciliation of reported to adjusted results.

Quarterly Earnings Conference Call

Victoria's Secret & Co. will conduct its fourth quarter earnings call at 8:30 a.m. Eastern on Thursday, March 5, 2026.

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