Victoria's Secret & Co. NYSE: VSCO reported a stronger-than-expected first quarter of fiscal 2026, with management citing broad-based growth across Victoria's Secret, PINK and Beauty, stronger customer acquisition and benefits from a more disciplined promotional strategy.
Chief Executive Officer Hillary Super said the company’s momentum from the second half of 2025 continued into the quarter ended May 2, 2026. Total comparable sales increased 13%, marking the company’s fourth consecutive quarter of positive comps, while total sales rose 15%.
“The strength was broad-based across the business,” Super said. She said Victoria’s Secret, PINK and Beauty each delivered double-digit sales growth, with gains across channels and geographies.
Chief Financial and Operating Officer Scott Sekella said first-quarter net sales were $1.56 billion, up $207 million from the prior year. Adjusted operating income rose 153% to $80 million, and adjusted earnings per share increased more than 500% to $0.60. Management said those results exceeded the high end of the company’s guidance for both sales and profit.
Sales Growth Driven by Bras, PINK and Beauty
Super said the company is a little more than a year into its “Path to Potential” strategy, which focuses on strengthening bra authority, recommitting to PINK, growing Beauty and evolving brand marketing and go-to-market execution.
In the bra business, sales grew in the low double digits, with strength across silhouettes and price tiers. Super said bras created a halo effect across the Victoria’s Secret brand, with panties and sleep each up in the mid-teens. She said the company has spent the past 18 months refining its top 10 bra frames, improving fit, comfort and styling while creating room for innovation in areas such as bra tops, bralettes and online bras.
Super highlighted the relaunch of the Signature collection, including the company’s top-selling T-shirt bra, and the launch of the Invisible Strapless collection, which was supported by a campaign starring Angel Reese.
PINK delivered low double-digit growth in the quarter, driven by strength in core apparel and intimates, improved regular-price selling and stronger engagement with younger customers. Super said the brand is increasingly standing on its own and is benefiting from newness, fashion-led assortments and cultural relevance.
“We are really studying her deeply to understand how she lives her life, what the moments that matter are, and what's important to her in a brand,” Super said during the question-and-answer session, referring to PINK’s focus on the 18-to-24-year-old customer.
Beauty also posted low double-digit growth, led by fine fragrance and the Mist collection. Super said the company is integrating Beauty more closely into broader brand campaigns and using more targeted marketing around key gifting periods.
Valentine’s Day and Marketing Campaigns Support Momentum
Management pointed to Valentine’s Day as one of the quarter’s major brand moments. Super said the company delivered double-digit growth across Victoria’s Secret, PINK and Beauty during the Valentine’s Day period, with positive comps in key gifting categories. She said February growth was the first for the company in eight years.
For Victoria’s Secret, the company used a campaign with Hailey Bieber and a more fashion-forward assortment. For PINK, it partnered again with the K-pop group TWICE following the response to the group’s appearance at the fashion show. Super said the campaign drove more than 2 billion impressions during the Valentine’s Day period.
The company also launched “Angels Among Us,” a nationwide search for the next Angel. Super said more than 100,000 aspiring Angels participated in the application process, generating more than 1.7 billion media impressions. The company plans to share participants’ stories in the months leading up to its fashion show this fall.
Super said customer engagement is rising across channels, with the company seeing double-digit gains in new customer acquisition and file growth across age and income cohorts. She said the strongest customer growth came from households earning under $50,000 annually and over $200,000.
Margins Benefit From Less Promotion
Sekella said the company’s “promo detox” strategy continued to support margins. First-quarter adjusted gross margin dollars rose 23% to $587 million, while adjusted gross margin rate expanded 240 basis points to 37.6% from 35.2% a year earlier. He said the improvement came despite about $14 million, or 90 basis points, of incremental net tariff pressure.
The margin gains were driven by higher merchandise margins, a greater mix of regular-price selling, fewer promotions and leverage on buying and occupancy expenses from higher sales, Sekella said. Average unit retail was up in the mid-single digits in the quarter.
Adjusted SG&A expenses were $507 million, with the SG&A rate improving slightly to 32.5% from 32.8% a year earlier. Sekella said expense leverage was aided by the sales beat and ongoing expense management, partly offset by higher incentive compensation and investments in store labor and customer-facing initiatives.
The company repurchased 2.2 million shares for $100 million during the quarter at an average price of about $45 per share. Sekella said $150 million remained under the company’s $250 million repurchase authorization approved in March 2024.
Company Raises Fiscal 2026 Outlook
Victoria’s Secret raised its full-year outlook following the first-quarter outperformance and continued momentum into the second quarter. The company now expects fiscal 2026 net sales of $7.03 billion to $7.13 billion, up from prior guidance of $6.85 billion to $6.95 billion. That represents expected growth of 7% to 9% compared with fiscal 2025 net sales of $6.553 billion.
Adjusted operating income is now expected to range from $550 million to $580 million, up $120 million at both ends of the prior range. Sekella said $55 million of the increase reflects underlying business strength and top-line expansion, while $65 million reflects more favorable net tariff impacts than previously expected.
The company raised its adjusted earnings-per-share forecast to $4.35 to $4.60, compared with prior guidance of $3.20 to $3.45 and fiscal 2025 adjusted EPS of $3.00.
For the second quarter, management expects net sales of $1.59 billion to $1.615 billion, representing growth of about 9% to 11% from the prior year. Operating income is expected to range from $90 million to $100 million, and adjusted EPS is expected to be $0.65 to $0.75.
International Business and Ticker Change
Sekella said international sales grew 45% in the first quarter, including mid-teens retail comp growth. Adjusting for a reporting shift tied to European digital sales, international sales grew 36%. Management said China remained a key driver, particularly in digital channels supported by social selling.
Super also said the company began trading under a new ticker symbol, VSXY, on the day of the call. She said the ticker reflects the company’s evolution and its focus on its brand identity.
During the Q&A session, management addressed several topics, including marketing investment, customer retention, Beauty growth, sports bras and tariffs. Sekella said the company is assuming 10% tariffs through the end of July and a return to 20% tariff rates for the rest of the year, while also noting that gross tariffs remain a headwind even with mitigation efforts.
Super said the company’s focus remains on product, marketing and customer experience. “More people are engaging with our brands, talking about our brands, and participating in our brand moments,” she said. “That growing engagement is creating a multiplier effect across the business.”
About Victoria's Secret & Co. NYSE: VSCO
Victoria's Secret & Co is a leading designer, manufacturer and marketer of intimate apparel, beauty products and accessories for women. The company operates a portfolio of brands that includes Victoria's Secret, renowned for its lingerie, bras and sleepwear; PINK, a line targeting younger consumers with activewear and lifestyle products; and Victoria's Secret Beauty, offering fragrances, cosmetics and personal care items. Products are sold through retail stores as well as direct-to-consumer channels, including e-commerce platforms and mobile applications.
The origins of Victoria's Secret date back to 1977, when founders Roy and Gaye Raymond opened the first store in San Francisco.
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