Victoria's Secret lifts full-year guidance after 10% Q2 sales jump to $1.611 billion
Net income surged to $183 million after the retailer collected more than $140 million in IEEPA tariff refunds.
Victoria's Secret reported second-quarter sales of $1.611 billion, up 10% from a year earlier, for the three months ending August 1. Comparable sales rose 9%. The Reynoldsburg, Ohio-based company called the growth broad-based across its business.
Net income surged to $183 million, or $2.18 per diluted share, compared with $16 million, or $0.20 per diluted share, in the same quarter last year. The company said it received IEEPA tariff refunds of more than $140 million during the quarter, representing over 95% of the tariffs it had paid. Stripping out those refunds, adjusted net income was $80 million, or $0.95 per diluted share, above its own prior guidance range of $0.65 to $0.75.
Chief financial and operating officer Scott Sekella said the results showed continued strength and improving quality in the business, pointing to stronger regular-price selling and disciplined execution despite ongoing tariff uncertainty.
The raised outlook
Victoria's Secret lifted its fiscal 2026 guidance on the back of the quarter. It now expects full-year sales of $7.1 billion to $7.18 billion, up from a prior range of $7.03 billion to $7.13 billion. Adjusted operating income guidance rose to $560 million to $590 million, from $550 million to $580 million.
The results come three months after Victoria's Secret & Co. shareholders re-elected all nine company-backed director nominees, handing management a decisive win over activist investor BBRC International in a proxy fight. What remains unclear is how much of the tariff refund carries into future quarters, since the $140 million figure covers this reporting period only.
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