Victoria's Secret lifts outlook after Q1 beat

Victoria's Secret & Co. reported a stronger-than-expected start to fiscal 2026, with first-quarter net sales of $1.56 billion, a 15% increase year-over-year. Total comparable sales rose 13% in the quarter, marking the fourth consecutive period of positive comparable-sales growth for the retailer.

Adjusted earnings per share were $0.60, exceeding Wall Street estimates that had been in the roughly $0.30–$0.32 range. Reported operating income came in at $76 million, while adjusted operating income was $80 million for the quarter.

Management said the quarter benefited from higher regular‑price selling and reduced promotional activity, which supported profitability. Lower tariff costs were also cited as a tailwind to margins during the period.

The company highlighted strengthening demand among younger consumers as a key factor, noting meaningful market‑share gains in the 18–24 age group. Executives pointed to this cohort as an area of particular momentum within the overall sales improvement.

On the back of the better-than-expected results, Victoria's Secret raised its fiscal 2026 net sales guidance to a range of $7.03 billion to $7.13 billion. The company also lifted its adjusted operating income outlook to a range of $550 million to $580 million.

Management linked the upgraded outlook to stronger topline performance, improved leverage on fixed costs, and reduced projected tariff exposure. These factors were presented as supporting both revenue growth and profitability expectations for the remainder of the fiscal year.

For the fiscal second quarter of 2026, Victoria's Secret projected net sales between $1.59 billion and $1.62 billion. Operating income for the quarter is expected to be in the range of $90 million to $100 million, reflecting management's confidence in continued business momentum.

During the first quarter, the company repurchased 2.2 million shares for $100 million under its existing buyback authorization. The average repurchase price was $45.27 per share, signaling ongoing capital returns to shareholders alongside the operational improvement.

Reports said Victoria's Secret shares surged in premarket trading after the earnings release and guidance update, with accounts placing the rise in the mid‑to‑high‑30% range, roughly 34% to 40%. The jump followed the company's earnings beat, raised annual forecasts, and stronger outlook for the second quarter.

Headline coverage from financial news outlets framed the move as a sharp reaction to the combination of robust sales growth, improving profitability, and updated guidance. Management's comments on gains with younger shoppers and reduced reliance on promotions added further context for investor response.