On September 3, US time, American lingerie company Victoria's Secret (Victoria's Secret & Co, hereinafter "Victoria's Secret") released its financial results for the second quarter and first half of fiscal 2026, ended August 1, 2026: net sales rose 10% year over year to $1.611 billion, near the upper end of the company's guidance range but slightly below analysts' expectation of $1.62 billion. Second-quarter comparable sales rose 9% year over year.
On profitability, second-quarter adjusted operating income was $124 million, exceeding guidance, compared with $55 million a year earlier; adjusted net income was $80 million, or $0.95 per diluted share, compared with adjusted net income of $27 million, or $0.33 per diluted share, a year earlier.
In the first half of fiscal 2026, Victoria's Secret recorded net sales of $3.17 billion, operating income of $333 million and net income of $245 million. In the year-earlier period, sales were $2.812 billion, operating income was $60.74 million and net income was $20.8 million.
Victoria's Secret Chief Executive Officer Hillary Super said: "We delivered another strong quarter, with broad-based growth across all parts of our business. Our 'Path to Potential' strategy is working, with stronger brands that are more attuned to the market and a growing customer base. Through the combined power of product, brand image, storytelling and execution, we are capturing more market share."
She added: "We will increase strategic marketing investment to expand brand reach, deepen customer connections and amplify brand heat. Going forward, we will launch more product innovation, pursue multiple collaborations and create emotionally resonant marketing campaigns, including the Angels Among Us documentary series, a Victoria's Secret fashion show upgraded in both scale and quality, and holiday-themed marketing campaigns. We are excited about the business in the second half of the year and the opportunity to continue building these two iconic brands."
Thanks to the strong first-half performance and momentum in the second half, Victoria's Secret raised its full-year net sales and adjusted operating income outlook. It expects fiscal 2026 net sales of $7.10 billion-$7.18 billion (previously $7.03 billion-$7.13 billion) and adjusted operating income of $560 million-$590 million (previously $550 million-$580 million).
Although second-quarter operating income beat expectations and the full-year sales outlook was raised, revenue fell short of expectations and the full-year profit guidance was weak. As of the close on the day the results were released, Victoria's Secret shares fell about 13% from the previous trading day to $73.64 per share, after gaining about 220% over the past year. Its latest market capitalization is about $5.85 billion.
By business channel:
- North America physical stores: second-quarter net sales were $898 million, up 8.9% year over year; first-half net sales were $1.7 billion, up 10% year over year;
- Direct channel: second-quarter net sales were $439 million, up 8.1% year over year; first-half net sales were $909 million, up 8.2% year over year;
- International business: second-quarter net sales were $273 million, up 20% year over year; first-half net sales were $560 million, up 31.6% year over year.
｜Source: Official financial report
｜Image source: Victoria's Secret official website
｜Editor: LuxeCO
