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- **Revenue Growth**: Q3 net sales +9% YoY ($1.47B), intl sales +34% (China digital +30%). 
- **Margin Expansion**: Gross margin +170bps YoY, SG&A rate -30bps YoY. 
- **Market Share**: +1% U.S. intimates share, bras up mid-single digits. 
- **Customer Growth**: Total file +low single digits, new customers driving 18-34yr engagement. 
- **FY25 Guidance**: Sales $6.45-6.48B, EPS $2.40-2.65 (vs. prior $1.80-2.20). 
- **Tariff Mitigation**: $90M FY25 impact, offset by cost savings and strategic pricing. 
- **Strategic Focus**: 2026 Beauty expansion, PINK apparel growth (now 40% of PINK business), and Store of the Future updates. 


**【CEO Opening Remarks】**
- **Q3 Outperformance**: Net sales of $1.47B (+9% YoY), adjusted gross margin +170bps, earnings up 45%. 
- **Path to Potential Strategy**: 4 pillars - Bra Authority, PINK Revival, Beauty Growth, Brand Evolution. 
- **Fashion Show Impact**: 61M streams, +9M social followers, $51B media impressions. Post-show, shoppable product sales doubled YoY. 
- **Market Share Gain**: +1% U.S. intimates market share, bras up mid-single digits. 
- **Customer Growth**: Total customer file +low single digits, new customers driving 18-34yr demographic engagement. 
- **Holiday Momentum**: Strongest Black Friday turnout since spinoff, 1M+ North America customers (+high single digits YoY). 

**【CFO Financial Commentary】**
- **Top Line**: Q3 net sales $1.47B (+9% YoY), intl sales +34% (China digital +30%). 
- **Margin Expansion**: Adj. gross margin 36.5% (+170bps YoY), SG&A rate 36.5% (-30bps YoY). 
- **Profit Beat**: Adj. EPS -$0.27 vs. -$0.50 YoY, driven by sales beat and expense control. 
- **FY25 Guidance Update**: 
  - Net sales $6.45-6.48B (+4% vs. prior $6.33-6.41B) 
  - Adj. Op. Income $350-3 $35M (vs. prior $270-320M) 
  - Adj. EPS $2.40-2.65 (vs. prior $1.80-2.20) 
- **Tariff Mitigation**: $90M FY25 impact, offset by vendor cost savings, strategic pricing, and GWP promotions. 

**【Q&A Highlights】**
- **Customer Acquisition**: 18-24yr PINK customers +double digits, AURs up 6% ex-panties. 
- **Beauty Growth**: 40% of customers not yet shopping Beauty, 2026 focus on innovation pipeline and PINK Beauty expansion. 
- **Tariff Impact**: Q4 gross margin rate -90-190bps YoY, 2026 mitigation efforts to offset $65M Q4 impact. 
- **Store of the Future**: 25% North America fleet updated, intl 40%, focusing on PINK apparel assorting and Beauty cross-sell. 
- **Promo Strategy**: Pulling back on full-box promotions, using GWPs to drive +AOV (+$100+ in Q4). 
- **PINK Intimates**: Return to growth post-Fashion Show, 2026 plans to replicate success with targeted innovation. 


Victoria's Secret & Co. (VSCO) Q3 2026 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

VSCO

VSCO fundamentals

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