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SEC filingVictoria's Secret & Co. delivered FY2025 net sales of $6.55 billion, ending January 31, 2026, reflecting contributions from North American stores ($3.544 billion, 54%), digital channels ($2.042 billion, 31%), and international ($967 million, 15%). Gross profit stood at $2.38 billion, with operating income of $271 million, down from $310 million in FY2024 per management's discussion. Net income was $189 million, with $161 million attributable to the company (versus $165 million prior year), and diluted EPS of $2. Key pressures included $120 million Adore Me long-lived assets impairment charges within operating expenses. Cash flow from operations reached $499 million, driven by net income, depreciation of $238 million, and working capital improvements like $112 million inventory reduction. Investing activities used $184 million, mainly $187 million capital expenditures, while financing used $24 million. Net cash increased $291 million, with ending cash equivalents at $427 million (balance sheet cash $518 million). Total assets were $5.01 billion, liabilities $4.10 billion, equity $910 million, long-term debt $971 million. Company-operated stores totaled 858, down from 882, amid optimization. The 'Path to Potential' growth plan emphasizes supercharging bra authority, PINK recommitment, beauty expansion, and brand evolution, reinforcing market leadership in intimates.
Victoria's Secret & Co., a specialty retailer of women's intimates under Victoria’s Secret, PINK, and Adore Me brands, reported FY2025 results ending January 31, 2026. Net sales totaled $6.55 billion. Gross profit was $2.38 billion after costs of goods sold, buying, and occupancy of $4.17 billion. General, administrative, and store operating expenses were $2.11 billion, yielding operating income of $271 million, compared to $310 million in FY2024. Interest expense was $70 million, other income $7 million, income before taxes $208 million, provision for income taxes $19 million, net income $189 million. Net income attributable to noncontrolling interest was $28 million, leaving $161 million attributable to the company, versus $165 million prior year. Diluted EPS was $2. The company operated 858 stores (down from 882), with 562 partner-operated international stores. Total assets reached $5.01 billion.
The company operates as a single segment but disclosed channel breakdowns for FY2025 net sales of $6.55 billion. North American stores contributed $3.544 billion (54%), including 790 U.S. and Canada locations totaling part of 5.5 million square feet. Digital channels, including websites and marketplaces, generated $2.042 billion (31%). International channels, encompassing China joint venture stores (65), franchise/license/wholesale partner stores (562 in 70 countries), and royalties, accounted for $967 million (15%). Revenue from franchise/license is royalties on partner sales (low-double digits to low-teens percentage), wholesale at title passage. No prior-year channel figures disclosed. Merchandise from 335 vendors, largest 13% of purchases.
Gross profit of $2.38 billion followed net sales of $6.55 billion and costs of $4.17 billion. Operating income of $271 million resulted after $2.11 billion in general, administrative, and store operating expenses, impacted by $120 million Adore Me long-lived assets impairment ($116 million in G&A, $4 million buying/occupancy), $36 million Adore Me/DailyLook restructuring, offset by $69 million interchange fee settlement gain. Adjusted operating income was $403 million versus $373 million prior year per reconciliation. Amortization of intangible assets $19 million. No explicit margin percentages stated.
Net cash provided by operating activities was $499 million, including net income $189 million, depreciation/amortization $238 million, Adore Me impairment $120 million, share-based compensation $55 million, deferred taxes -$49 million, inventory decrease $112 million, accounts payable/accrued increase $114 million. Investing used $184 million, with capital expenditures $187 million. Financing used $24 million, including revolving facility borrowings/repayments netting zero ($545 million each), tax payments on shares $15 million, Adore Me payments $4 million, long-term debt payments $4 million. Net cash increase $291 million; ending cash equivalents $427 million. Balance sheet: current assets $1.88 billion (cash $518 million, inventories $1.07 billion), total assets $5.01 billion (property/equip $731 million, operating leases $1.63 billion, goodwill $367 million, trade names $246 million). Current liabilities $1.51 billion, long-term debt $971 million, total liabilities $4.10 billion, equity $910 million ($856 million company, $54 million noncontrolling).
The 'Path to Potential' growth plan prioritizes supercharging bra authority, recommitting to PINK, fueling beauty growth, and evolving brand projection/go-to-market strategy to accelerate growth, differentiate brands, and reinforce North America/international authority. Investments include store refreshes in 'store of the future' concept, digital enhancements with AI chatbots/geo-targeting, international expansion via partners/joint ventures. Opened 22 stores, closed 46 in FY2025. Focus on agile supply chain, product innovation. Risks include seasonal operations (holiday ~1/3 sales), working capital peaks, regulations, intellectual property protection against counterfeiting.