Victoria's Secret raises full-year guidance after 10% second-quarter sales rise
Net income surged to $183 million after the retailer collected more than $140 million in tariff refunds.
Victoria's Secret reported second-quarter sales of $1.611 billion, up 10% on the prior year, for the three months ending 1 August. Comparable sales rose 9%, which the Reynoldsburg, Ohio-based company attributed to broad-based growth across its business.
Net income jumped to $183 million, or $2.18 per diluted share, from $16 million, or $0.20 per share, a year earlier. 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.
Adjusted net income was $80 million, or $0.95 per diluted share, above the company's previous guidance range of $0.65 to $0.75 per share.
Guidance raised for the year
Victoria's Secret now expects fiscal 2026 sales of $7.1 billion to $7.18 billion, up from a prior range of $7.03 billion to $7.13 billion. It lifted its operating income forecast to $560 million to $590 million, up from $550 million to $580 million. The company said it is now forecasting fiscal-year sales to be in the range of $7.1 billion to $7.18 billion, up from its previous guidance range of $7.03 billion to $7.13 billion.
"Our second quarter results demonstrate the continued strength and improving quality of the business," said Scott Sekella, VS&Co chief financial and operating officer. In June, shareholders re-elected all nine company-backed board nominees over a challenge from activist investor BBRC International. Sekella said the company continued to benefit from stronger regular-price selling and disciplined execution while navigating ongoing tariff uncertainty.
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