Victoria’s Secret Sales Rise 10% as Company Raises Full-Year Outlook

Victoria’s Secret & Co. reported a stronger second quarter on Thursday, with net sales up 10.4% from a year earlier and adjusted operating income above its own guidance range, prompting the retailer to raise its full-year outlook. The company said net sales for the quarter ended Aug. 1 reached $1.611 billion, up from $1.459 billion a year earlier, while total comparable sales rose 9%.

The earnings update, released ahead of the market open, pointed to continued momentum under Chief Executive Officer Hillary Super’s turnaround plan. Victoria’s Secret said operating income increased to $257 million from $41 million a year earlier. Net income rose to $183 million, or $2.18 a diluted share, from $16 million, or $0.20 a diluted share, in the same quarter last year. Excluding adjusted items, the company said adjusted operating income was $124 million and adjusted net income was $80 million, or $0.95 a diluted share.

Those adjusted figures were important because management had previously guided to second-quarter adjusted operating income of $90 million to $100 million and adjusted earnings of $0.65 to $0.75 a share. By clearing that range, Victoria’s Secret added another sign that its recent gains are not limited to top-line growth. The company also said sales came in near the high end of its prior net-sales guidance range of $1.590 billion to $1.615 billion.

Growth was broad across stores, direct and international operations

According to the company’s second-quarter 2026 earnings release, sales increased across each of its three main reporting channels. North America store sales rose 8.9% to $897.9 million. Direct sales increased 8.1% to $439.4 million. International sales climbed 20.0% to $273.4 million, making that channel the fastest-growing part of the business in percentage terms.

The company’s year-to-date figures also showed that growth extended beyond a single quarter. Total net sales for the first half of fiscal 2026 reached $3.170 billion, up 12.7% from $2.812 billion in the comparable period of 2025. North America stores generated $1.701 billion of that total, up 10.0%, while direct sales rose 8.2% to $908.8 million. International sales advanced 31.6% to $560.8 million.

Management said the quarter reflected stronger regular-price selling, continued product relevance and disciplined execution. In prepared remarks, Super said the company saw broad-based growth across the business and described the Path to Potential strategy as gaining traction. The company pointed to gains in product, brand identity, storytelling and execution, and said it believes those elements are helping it attract customers and build share.

The release also suggested management is willing to keep leaning into that strategy rather than simply protect near-term margin gains. Super said the company plans to increase strategic marketing investment in the second half of the year to expand its reach and deepen customer connection. She highlighted a slate of upcoming brand efforts, including the Angels Among Us docuseries, a larger Victoria’s Secret Fashion Show and holiday marketing activations.

Raised full-year guidance signals confidence in the second half

Victoria’s Secret lifted its fiscal 2026 outlook on both sales and adjusted operating income. The company now expects full-year net sales of $7.100 billion to $7.180 billion, compared with its previous guidance of $7.030 billion to $7.130 billion. At that projected sales level, it now expects adjusted operating income of $560 million to $590 million, up from prior guidance of $550 million to $580 million.

The revised forecast implies management sees enough momentum in the back half of the year to absorb a planned step-up in marketing spending while still improving profitability. For context, the company said fiscal 2025 net sales were $6.553 billion and adjusted operating income was $403 million. Even the low ends of the new ranges would therefore imply meaningful year-over-year improvement.

Management also outlined expectations for the third quarter, which gives a nearer-term read on how it sees the current selling environment. Victoria’s Secret forecast third-quarter net sales of $1.570 billion to $1.600 billion, versus $1.472 billion in the year-ago quarter. It expects third-quarter operating income of $10 million to $20 million, compared with adjusted operating income of breakeven in the same quarter last year.

That guidance matters because the second half includes some of the company’s more visible brand campaigns and a heavier promotional calendar. By raising the full-year outlook while also planning more marketing activity, management is signaling that it expects customer demand and product performance to remain supportive enough to offset the added spending.

Adjusted results matter because tariff refunds boosted reported profit

One of the biggest distinctions in the release was between reported and adjusted profitability. Victoria’s Secret said it received more than $140 million of IEEPA tariff refunds in the second quarter, representing more than 95% of the IEEPA tariffs paid by the company. It excluded the impact of those refunds, along with another adjusted item described in the release, from its adjusted results.

That is why the gap between reported and adjusted profit measures was so wide. Reported operating income came in at $257 million, but adjusted operating income was $124 million. Reported net income was $183 million, while adjusted net income was $80 million. For investors evaluating the underlying performance of the retail business, the adjusted figures provide a cleaner comparison with management’s prior guidance and with last year’s adjusted base.

Even on that adjusted basis, the quarter still showed marked improvement from a year earlier. Adjusted operating income more than doubled from $55 million in the second quarter of 2025, while adjusted net income increased from $27 million, or $0.33 a diluted share. That suggests the company’s earnings improvement was not solely a function of the tariff-related benefit.

Additional materials posted on the company’s quarterly results page include the earnings release, financial presentation and investor deck for the period. Victoria’s Secret is scheduled to hold its second-quarter earnings call at 8:30 a.m. Eastern on Sept. 3. Investors will likely focus on how durable the recent sales momentum proves to be, whether international growth can remain strong, and how much the planned increase in marketing spend contributes to the company’s second-half performance.