Victoria’s Secret (VSCO) Q4 2025 earnings

Victoria’s Secret It beat expectations during the holiday quarter and forecast a better-than-expected year for sales growth Thursday as CEO Hilary Soper’s turnaround plan continues to resonate with shoppers.

The vintage bra and underwear company beat Wall Street’s expectations on both the top and bottom lines and issued guidance that beat Wall Street’s expectations.

For the current quarter, Victoria’s Secret expects sales to range between $1.49 billion and $1.53 billion, beating estimates of $1.42 billion. For the full year, it expects this momentum to continue and expects sales to be between $6.85 billion and $6.95 billion, beating expectations of $6.8 billion.

“This quarter, our customers responded enthusiastically to our product and marketing, as evidenced by increased new customer acquisition and customer growth [average until retails]“Our 2025 results reflect the progress we have made on our Path to Potential strategy as we build our strong brand and relationships with our customers around the world,” Soper said in a statement.

Here’s how the retailer performed in its fiscal fourth quarter compared to what Wall Street was expecting, based on a survey of analysts conducted by LSEG:

• EPS: $2.77 was revised versus $2.52 expected
• profit: $2.27 billion versus $2.23 billion expected

Despite the strong results and guidance, Victoria’s Secret shares fell more than 6% in pre-market trading Thursday.

The company’s net income for the three-month period ending January 31 was $183.63 million, or $2.14 per share, compared to $193.4 million, or $2.33 per share, in the previous year. Excluding impairment charges related to Adore Me’s assets, restructuring charges and other one-time expenses, Victoria’s Secret’s adjusted net income was $238 million, or $2.77 per share.

Sales rose to $2.27 billion, up about 8% from $2.11 billion the previous year.

Since taking over as Victoria’s Secret’s top CEO about a year and a half ago, Soper has worked to revive sales growth and profitability by transforming the way the company markets to shoppers, doubling its billion-dollar beauty business, recommitting to its 2000s-era pink line, and reasserting its dominance of the bra category. A year later, the strategy shows continued signs of progress.

Comparable sales have grown for three straight quarters now, including during the most recent quarter where comps rose 8%, better than the 5.6% increase analysts expected, according to StreetAccount. It’s the longest period of continuous growth in comparable sales in at least four years, according to FactSet metrics.

Since it was spun off from its former parent company L Brands in 2021, Victoria’s Secret has until recently tried unsuccessfully to regain relevance with consumers. Its focus on ultra-sexy styles over comfortable, functional underwear, combined with out-of-touch marketing, drove shoppers to startups and other legacy competitors, driving down its market share.

It acquired digital startup Adore Me in 2022 as a way to cater to a wider range of shoppers and body types through the brand’s focus on inclusive fits and a range of lingerie styles that range from sexy to comfortable. But the acquisition was not enough to return Victoria’s Secret to sustainable growth.

During the quarter, the company took $119.6 million in impairment charges related to Adore Me and also said it had initiated a “strategic review” of DailyLook, a brand acquired through the Adore Me deal. Strategic reviews often involve finding a buyer who wants to acquire the brand.