Victoria's Secret Raises 2026 Outlook on Strong Sales, Margins

Victoria's Secret & Co. raised its FY26 sales outlook to $7.10-$7.18 bln, up 8%-10% YoY, and adjusted earnings to $4.45-$4.70 per share. Q2 net sales rose 10.4% to $1.611 bln, and adjusted earnings increased 187.9% YoY to $0.95 per share, beating the consensus estimate by 21.8%. The company's adjusted gross margin expanded 320 basis points YoY to 38.8%, driven by higher merchandise margin and buying and occupancy leverage on higher sales.