Victoria's Secret (VSCO) Q3 2026 earnings summary

Executive summary

• Net sales for Q3 2025 rose 9% year-over-year to $1.472 billion, surpassing guidance, with growth across all brands and channels, including North America, direct, and international, and notable gains in the U.S. intimates market share and customer acquisition.

• International sales surged 34%, led by China and partner sourcing, with Black Friday turnout at its highest since the spinoff.

• Operating and net losses narrowed significantly compared to Q3 2024, with adjusted results outperforming guidance and adjusted EPS at ($0.27) versus guidance of ($0.55)–($0.75).

• The Victoria's Secret fashion show and collaborations generated significant cultural and commercial impact, boosting brand engagement, new customer acquisition, and product sell-through.

• Security incident in Q2 2025 impacted sales and income but was resolved without material disruption; leadership restructuring and Adore Me acquisition costs were recognized.

Financial highlights

• Q3 2025 net sales were $1.472 billion, up 9% year-over-year, with comparable sales growth of 8% and gross profit rising to $536 million; adjusted gross margin expanded by 170 basis points to 36.5%.

• Adjusted operating income was breakeven, outperforming guidance; adjusted net loss per share was $0.27, better than guidance and last year's $0.50 loss.

• Year-to-date net sales reached $4.284 billion, up 4% year-over-year; adjusted net income for the period was $12.5 million, up from $1.1 million.

• Cash balance at quarter-end was $249 million, with $1.35 billion in long-term debt and $358 million available under the ABL Facility.

• Interest expense decreased to $18 million in Q3 2025 from $22 million in Q3 2024; effective tax rate for Q3 2025 was 16.0%.

Outlook and guidance

• Raised full-year 2025 net sales outlook to $6.45–$6.48 billion, with adjusted operating income guidance increased to $350–$375 million and adjusted EPS now expected at $2.40–$2.65.

• Fourth quarter net sales forecasted at $2.17–$2.2 billion, with adjusted EPS of $2.20–$2.45.

• Adjusted gross margin rate for Q4 projected at 37.0%–38.0%, below prior year’s 39.7%.

• Capital expenditures for 2025 expected at $200 million, focused on stores, customer experience, technology, and logistics.

• Adjusted free cash flow forecasted at $170–$210 million for fiscal 2025.