Victoria's Secret (VSCO) Q3 2025 earnings summary

Executive summary

• Q3 2024 net sales rose 7% year-over-year to $1.347 billion, marking the strongest quarterly sales growth since 2021, with all brands and channels contributing and international sales up over 20%.

• Comparable sales increased 3% in Q3, with North America store sales up 2% and direct channel sales up 7%.

• Q3 results exceeded guidance, driven by strong product acceptance, effective marketing, digital engagement, and the return of the VS Fashion Show.

• Executive leadership changes included a new CEO and elimination of two executive roles, incurring $12.5–$13 million in restructuring charges.

Financial highlights

• Q3 2024 adjusted gross profit was $468 million (34.8% of sales), up from $433.8 million (34.3%) in Q3 2023.

• Q3 2024 adjusted net loss was $39 million ($0.50 per share), improving from $66 million ($0.86 per share) last year.

• Q3 2024 operating loss improved to $47 million from $67 million in Q3 2023; adjusted operating loss was $28 million, down from $60 million.

• Year-to-date 2024 net sales increased 1% to $4.124 billion, with operating income of $42 million versus a $13 million loss in the prior year.

• Cash and equivalents at quarter-end were $160.8 million, with $291 million available under the ABL Facility.

Outlook and guidance

• Q4 2024 net sales expected to rise 2%–4% year-over-year; adjusted operating income forecasted at $240M–$270M and adjusted EPS at $2.00–$2.30.

• Full-year 2024 net sales now expected to increase 1%–2%, with adjusted operating income of $315M–$345M and adjusted EPS of $2.05–$2.35.

• 2024 capital expenditures expected to be approximately $190 million.

• Adjusted free cash flow for 2024 forecasted at $250–$280 million.