Victoria's Secret Raises Sales Outlook, Boosting Market Confidence in Turnaround Efforts

Victoria's Secret reported Q2 2025 results exceeding expectations, with sales reaching $1.46 billion and adjusted EPS beating consensus estimates. The company raised its full-year sales guidance, highlighting momentum across both Victoria's Secret and PINK brands globally. Despite improved sales projections, net profit has continued to decline year-over-year, raising questions about underlying earnings quality. Investors should be mindful of these concerns while considering Victoria's Secret's turnaround strategy and future prospects.

Victoria's Secret & Co. (VSCO) reported its Q2 2025 results, which exceeded market expectations. The company's sales reached $1.46 billion, representing a 3% increase compared to the same period last year. Adjusted earnings per share (EPS) also surpassed consensus estimates, coming in at $0.33 versus the expected $0.11 [1].

The company attributed its strong performance to several factors. CEO Hillary Super highlighted the brand's evolution and product innovation, while CFO Scott Sekella emphasized gross margin expansion despite tariff headwinds. International sales growth was particularly notable, with a 22% year-over-year increase [3].

Victoria's Secret also raised its full-year 2025 sales guidance, projecting net sales in the range of $6.33 billion to $6.41 billion. This represents an increase from the previously guided range of $6.2 billion to $6.3 billion. The company expects Q3 net sales to range between $1.39 billion and $1.42 billion, with an adjusted net loss per share of $0.55 to $0.75 [1].

Despite the positive sales figures, the company's net profit has continued to decline year-over-year. This raises questions about the quality of earnings and the sustainability of the company's turnaround strategy. Investors should be cautious and closely monitor the company's future prospects, keeping in mind the broader industry trends and the impact of tariffs on profitability.

References:
[1] https://www.tradingview.com/news/reuters.com,2025:newsml_PLX1B865A:0-lingerie-maker-victoria-s-secret-q2-sales-beat-expectations-raises-2025-sales-guidance/
[2] https://finance.yahoo.com/news/victorias-secret-vsco-beats-q2-121502475.html
[3] https://seekingalpha.com/news/4490137-victorias-secret-raises-full-year-net-sales-guidance-to-6_41b-amid-strong-q2-and-strategic