VSCO · Victoria's Secret & Co.

Victoria's Secret & Co. delivered a robust first quarter, with net sales of $1.560 billion exceeding the guided range of $1.490-$1.525 billion and representing 15% year-over-year growth. The beat was driven by double-digit comparable sales of 13%, the fourth consecutive quarter of positive comps, and broad-based strength across all segments: North America stores rose 11.3%, direct climbed 8.4%, and international surged 44.9%. Adjusted operating income of $80 million far surpassed the $32-$42 million guidance, more than doubling last year's $32 million, thanks to gross margin expansion from higher regular-price selling and reduced promotions, despite tariff headwinds. GAAP operating income of $76 million compared to $20 million in the prior year. Net income attributable to the company swung to $48 million ($0.56 per diluted share) from a loss of $2 million ($0.02) last year; adjusted net income was $51 million ($0.60 per share). Management commentary highlighted progress on the 'Path to Potential' strategy, with CEO Hillary Super noting strong new customer acquisition and brand heat. CFO Scott Sekella emphasized disciplined execution and SG&A leverage. Looking ahead, management raised full-year fiscal 2026 guidance: net sales now expected at $7.030-$7.130 billion (from prior $6.850-$6.950 billion) and adjusted operating income at $550-$580 million (from $430-$460 million). For Q2, net sales guidance is $1.590-$1.615 billion with operating income of $90-$100 million. The company also repurchased 2.2 million shares for $100 million, with $150 million remaining under the $250 million authorization. The strong beat and raised outlook underscore accelerating momentum and the effectiveness of the company's strategic initiatives.