Victoria's Secret (VSCO) Investor presentation summary

Strategic positioning and growth initiatives

• Maintains leadership in global intimates with iconic brands and a strong omnichannel presence, including over 1,400 stores in 70 countries and 150M social media followers.

• Multi-year growth strategy focuses on supercharging bra authority, recommitting to PINK, fueling beauty growth, and evolving brand projection.

• Leadership team refreshed to drive transformation and execution, with clear focus on efficiency and customer-centric culture.

• Store of the Future remodels and digital expansion support geographic and omnichannel growth.

• Marketing pivots to emotional storytelling, digital engagement, and cultural relevance, highlighted by the return of the Fashion Show.

Financial performance and outlook

• Q4 2025 comparable sales up 8%, adjusted gross profit rate at 39.4%, and adjusted EPS of $2.77, all exceeding guidance.

• FY 2025 comparable sales up 5%, adjusted operating income of $403M, and adjusted EPS of $3.00, with strong free cash flow of $244M.

• Net sales for FY 2025 reached $6.55B, with net income attributable to shareholders up 15% year-over-year.

• 2026 outlook projects net sales of $6.85B–$6.95B, adjusted EPS of $3.20–$3.45, and free cash flow of $220M–$250M.

• Balance sheet strengthened with $518M in cash at year-end and increased equity.

Brand and product strategy

• Victoria's Secret remains the #1 bra brand globally, with two bras sold every second and continued market share gains.

• PINK targets Gen Z with high single-digit Q4 growth, six consecutive quarters of apparel growth, and viral marketing campaigns.

• Beauty segment led by Bombshell, the #1 fragrance in America, continues to drive consistent sales growth.

• Product innovation, reduced promotions, and newness drive margin expansion and customer engagement.

• Brand differentiation and emotional creative campaigns deepen customer connections and drive loyalty.