ETF Flows: Weekly Update as of August 28, 2025

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Victoria's Secret & Co. (NYSE: VSCO) reported its second quarter fiscal 2025 results on August 28, 2025, with better-than-expected revenue and a return to positive comparable sales. The company's revenue (GAAP) of $1.46 billion exceeded both the prior-year’s $1.42 billion and company guidance, beating the expected midpoint of $1.395 billion by 4.6% [2].

Comparable sales, a key retail metric, grew 4%, marking a sharp improvement from a 3% decline in the prior year. North American stores saw sales rise by 3.1%, while international operations delivered robust 21.8% sales growth, reaching $227.8 million. However, the Direct (online and digital) channel posted a 5.5% year-on-year sales decline [2].

Profitability faced pressure, with net income (GAAP) halving from a year ago to $16 million. Adjusted operating income, though higher than company guidance, dropped 11.5% from last year. Gross profit (GAAP) rose slightly, but increasing tariffs offset these gains and weighed on profits [2].

Victoria's Secret & Co. continues to rationalize its North American store fleet, closing 25 stores and opening 6 for a net reduction of 19. Adore Me shrank by one unit. The company also emphasized expansion in the beauty category, which accounts for about 25% of the business and is driven in part by strong international demand [2].

The quarter saw notable activity in physical stores and international expansion, with international sales jumping and the number of stores run by overseas partners and joint ventures rising. However, digital channel results were a challenge, with direct sales continuing to contract, impacted by competitive pressure and changing consumer behavior [2].

Cost pressures shaped results throughout the period, with general, administrative, and store operating expenses (GAAP) increasing from the prior year. Management attributed store and international performance to disciplined execution, the power of the evolving Victoria’s Secret and PINK brands, and early progress on its Path to Potential strategy [2].

References:
[1] https://www.easemate.ai/ai-pdf-solutions/gpt-prompt-to-summarize-a-pdf-with-most-important-details.html
[2] https://www.nasdaq.com/articles/victorias-secret-sales-3