Victoria's Secret (VSXY) investor relations material

Executive summary

• Net sales rose 10% year-over-year to $1.611 billion, near the high end of guidance, with growth across North America stores (+9%), direct (+8%), and international (+20%).

• Operating income reached $257 million, with adjusted operating income at $124 million, both exceeding guidance.

• Net income attributable to shareholders was $183 million ($2.18 per diluted share), up from $16 million ($0.20 per share) last year.

• Comparable sales increased 9% year-over-year, with strong performance in both stores and direct channels.

• Broad-based growth attributed to strategic marketing, product innovation, and brand relevance.

Financial highlights

• Adjusted net income for the quarter was $80 million ($0.95 per diluted share), up from $27 million ($0.33 per share) last year, excluding one-time items.

• Gross profit for Q2 2026 was $759 million (47.1% margin), up from $519 million (35.6% margin) in Q2 2025.

• Year-to-date net sales reached $3.17 billion, up 13% from $2.81 billion in 2025.

• Adjusted operating income for the quarter was $124 million, up from $55 million last year.

• Cash and equivalents at quarter-end were $522 million, up from $188 million a year ago, with no ABL borrowings.

Outlook and guidance

• Full-year 2026 net sales forecast raised to $7.10–$7.18 billion (8–10% growth), with adjusted EPS of $4.45–$4.70.

• Adjusted operating income guidance increased to $560–$590 million for 2026.

• Q3 2026 net sales expected at $1.57–$1.60 billion, with operating income of $10–$20 million and gross margin rate of ~38%.

• Capital expenditures for fiscal 2026 projected at $220–$240 million.

• International net sales expected to grow ~20% for the year.