Victoria's Secret (VSXY) Q1 2027 earnings summary

Executive summary

• Net sales for Q1 2026 rose 15% year-over-year to $1.56 billion, surpassing guidance, with broad-based strength across all brands, channels, and geographies, and international sales up 45%.

• Adjusted operating income reached $80 million, up 153% from Q1 2025, and operating margin improved to 4.9%.

• Adjusted EPS was $0.60, up from $0.09 last year, with net income at $48 million versus a $2 million loss in Q1 2025.

• Customer acquisition and engagement accelerated, especially among 18-24-year-olds and both lower and higher income cohorts.

• Continued execution of the Path to Potential strategy, focusing on brand building, product innovation, and disciplined promotional activity.

Financial highlights

• Net sales reached $1.56 billion, up 15% year-over-year; comparable sales increased 13%.

• Adjusted operating income rose to $80 million; adjusted net income was $51 million ($0.60 per diluted share).

• Gross profit increased to $585 million, with gross margin rate expanding to 37.6%.

• SG&A expense rate improved to 32.5% of sales, down 30 bps year-over-year.

• Cash and equivalents at quarter end were $207 million, up $69 million year-over-year.

Outlook and guidance

• Full-year 2026 net sales guidance raised to $7.03–$7.13 billion (7%-9% growth), up from prior $6.85–$6.95 billion.

• Adjusted operating income guidance for 2026 increased to $550–$580 million, up from $430–$460 million.

• Adjusted EPS guidance for 2026 raised to $4.35–$4.60.

• Q2 2026 net sales expected at $1.59–$1.615 billion; operating income $90–$100 million; gross margin rate projected at 38.5%.

• Capital expenditures for FY2026 estimated at $220–$240 million.