VictoriaS Secret 2026 Q2 Earnings Beats Expectations as Net Income Falls 43.8%

Victoria’s Secret reported Q2 2026 earnings, with revenue rising slightly and full-year guidance raised. The company exceeded expectations for sales and operating income, citing disciplined execution and brand evolution.

Revenue totaled $1.46 billion, up 3.0% year-over-year to $1.46 billion. North America and international markets contributed to the growth, with a 4% rise in comparable sales globally. However, the direct-to-consumer segment faced a slight decline.

Earnings declined sharply, with net income falling to $18 million, a 43.8% drop from $32 million a year ago, while EPS fell 51.2% to $0.20.

Victoria’s Secret’s stock price edged up 1.51% on the latest trading day and gained 33.18% month-to-date. The post-earnings price action showed a mixed performance, influenced by short-term market optimism.

Following the earnings report, the company raised its full-year sales guidance to $6.330–$6.410 billion and expects an adjusted operating loss in Q3. CEO Hillary Super highlighted strong Q2 performance, noting 4% comparable sales growth across both Victoria’s Secret and PINK in North America and globally. She credited disciplined execution, brand evolution, and early progress on the Path to Potential strategy for the momentum. With the refreshed leadership team in place, Super noted sharper execution and a reenergized culture contributing to the company’s significant momentum as it enters the back half of the year. She expressed optimism about the future, including opportunities to differentiate and elevate the brands while deepening emotional connections with customers.

For fiscal 2026, the company expects net sales between $6.330 billion and $6.410 billion, up from prior guidance of $6.2 billion to $6.3 billion. For Q3, the company forecasts net sales between $1.390 billion and $1.420 billion and anticipates an adjusted operating loss of $35 million to $55 million, with adjusted net loss per share in the range of $0.55 to $0.75. The company also expects adjusted operating income for the full year to be between $270 million and $320 million, reiterating prior guidance, and acknowledged an updated estimated net tariff impact of approximately $100 million for FY2025.

Additional News
Victoria’s Secret & Co. announced several key developments in the three weeks following its Q2 2025 earnings. The company reiterated its strategic focus on brand differentiation and customer connection under the Path to Potential strategy. Leadership stability remained a focus, with CEO Hillary Super emphasizing the impact of the refreshed leadership team on operational execution and brand momentum. No new dividend or buyback initiatives were announced during this period, as the company prioritized strategic growth and brand reinvention over immediate shareholder returns. The company remains committed to managing its tariff challenges and adapting its global sourcing strategies to mitigate the estimated $100 million fiscal impact for 2025.