Strong Third Quarter Performance Leads to Upward Revision of Full-Year Outlook
Victoria’s Secret & Co. delivered results that outpaced guidance in the third quarter of 2025, prompting the retailer to raise its forecasts for full-year net sales, operating income, and earnings per share. Net sales reached $1.47 billion—an increase of 9% over the prior year’s third quarter, and comfortably above the $1.39–$1.42 billion range the company previously anticipated. Comparable sales climbed 8% as growth extended across its Victoria’s Secret, PINK, and Beauty divisions and all operating channels.
Improved Margins and Narrowed Losses Point to Enhanced Operating Discipline
Profitability metrics improved meaningfully. While the company reported an operating loss of $19 million and a net loss of $37 million, both figures were significantly better than last year’s respective losses of $47 million and $56 million. On an adjusted basis, third quarter operating income was essentially breakeven, far exceeding guidance that called for a loss of $35–$55 million. Adjusted net loss per share was $0.27—also markedly better than the company’s forecasted range.
According to CFO Scott Sekella, these gains reflect “robust adjusted gross margin expansion of 170 basis points,” with a focus on selling at higher regular prices and pulling back on promotions—a sign of resilient brand equity and customer demand.
International and Store Channel Drive the Largest Sales Gains
The latest results underscore broad-based growth, but international expansion stood out: Sales outside North America jumped 33.5% in the quarter, while North American stores grew sales by 5.4%. Although direct channel sales rose just 4.3% (impacted by a temporary website closure earlier in the year), total company sales gained 9.2%.
| Segment | Q3 2025 (Millions) | Q3 2024 (Millions) | % Change |
|---|---|---|---|
| North America Stores | $778.2 | $738.1 | 5.4% |
| Direct | $428.5 | $411.0 | 4.3% |
| International | $264.8 | $198.3 | 33.5% |
| Total | $1,471.5 | $1,347.4 | 9.2% |
Comparable Sales Growth Reflects Broad Customer Momentum
| Sales Channel | Q3 2025 | Q3 2024 |
|---|---|---|
| Stores and Direct | 8% | 3% |
| Stores Only | 5% | 2% |
These figures indicate broadening momentum across channels—a turnaround from prior years when the company struggled to generate comparable growth.
Revised Guidance Signals Higher Full-Year Confidence
Victoria’s Secret now projects 2025 net sales between $6.45 and $6.48 billion, up from a prior range of $6.33 to $6.41 billion. Adjusted operating income is seen at $350–$375 million, and adjusted net income per diluted share is expected at $2.40–$2.65—well above previous projections. For the all-important fourth quarter, the company sees sales between $2.17 and $2.20 billion, operating income of $265–$290 million, and EPS of $2.20–$2.45, suggesting optimism ahead of the holiday period.
| Outlook | Prior Range | Revised Range |
|---|---|---|
| Full Year Net Sales | $6.33–$6.41B | $6.45–$6.48B |
| Full Year Adj. Op. Income | $270–$320M | $350–$375M |
| Full Year Adj. EPS | $1.80–$2.20 | $2.40–$2.65 |
| Q4 Adj. Net Sales | - | $2.17–$2.20B |
| Q4 Adj. Op. Income | - | $265–$290M |
| Q4 Adj. EPS | - | $2.20–$2.45 |
Disciplined Execution, Global Growth, and Brand Investments Set the Tone for 2026
The “Path to Potential” strategy is proving effective as management balances growth investments with tight expense control. CEO Hillary Super points to a “solid start to our fourth quarter,” international strength, and further digital initiatives as reasons for optimism into 2026.
Victoria’s Secret’s strong showing comes even as macroeconomic and industry-specific risks remain, including cost inflation and shifts in consumer confidence. Nevertheless, robust execution in margin management, supply chain adaptation, and channel expansion positions the brand to continue outperforming peers as retail volatility persists.
Takeaway: Guidance Upgrade Underscores Strategic Progress
The combination of sales growth, improved margin control, and raised guidance shows Victoria’s Secret is navigating a shifting retail landscape with renewed operational vigor. The next key milestone will be holiday quarter performance, where expectations are now higher and market attention is likely to intensify. Investors and industry watchers will want to track how the company delivers against these upgraded goals in the months ahead.
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