Victoria's Secret & Co. Q1 2025: Navigating Contradictions in Tariffs, Marketing, and International Growth

Tariff impact and mitigation strategies, marketing strategy and customer acquisition, international business performance, promotional strategy and gross margins, tariff mitigation and impact on gross margins are the key contradictions discussed in Victoria's Secret & Co.'s latest 2025Q1 earnings call.



Solid Q1 Performance and Strategic Progress:
- Victoria's Secret & Co. reported net sales of $1.353 billion for Q1 2025, with total comparable sales down 1% compared to the previous year.
- Despite challenging macroeconomic conditions, the company exceeded expectations by demonstrating agility and adjusting product offerings and marketing strategies, particularly by increasing newness and focusing on emotional storytelling.

PINK Apparel Growth and Brand Restrengthening:
- PINK apparel achieved its third consecutive quarter of positive comps, with significant margin and AUR expansion.
- Growth was driven by improved product offerings, fashion inspiration, and target customer engagement, indicating progress in reestablishing the brand's market position.

Beauty Segment Expansion and Loyalty:
- The Beauty business achieved its seventh consecutive quarter of growth, contributing to international sales growth.
- This success was attributed to the ongoing loyalty of its customer base and the launch of new product lines such as body care, which have shown strong customer interest.

VSX Bra Leadership and Innovation:
- VSX bras delivered their fifth consecutive quarter of double-digit growth, reflecting continued progress in product innovation and customer satisfaction.
- The focus on advanced fabric technology and comfort features has driven demand, particularly for products like the Knockout Front-Close bra, which offers superior support and versatility.