Victoria's Secret and Zegna post gains as brand turnarounds take hold

Victoria's Secret reported a 10% jump in second-quarter sales, a result chief executive Hillary Super framed as evidence the lingerie group has room to keep growing as it rebuilds its brand. The company is using the momentum to stage a runway show, a marketing vehicle it largely abandoned after 2018 amid criticism of its old image, and which it has since revived in a more inclusive form. The timing signals confidence that the retailer's multi-year effort to modernise its positioning, product range and marketing is translating into sales, not just goodwill.

Ermenegildo Zegna Group also posted a stronger first half, with operating profit boosted by improved margins at its Zegna brand. The company said it saw higher foot traffic in stores and better revenue per square metre, metrics that suggest the brand's push into more directional, elevated positioning under creative direction from Alessandro Sartori is resonating with shoppers rather than just holding steady. Zegna Group also owns Thom Browne and a stake in Tom Ford Fashion, giving it exposure across several price points and aesthetics.

Both results land at a moment when luxury demand is uneven and highly selective. Bernstein analysts have flagged weakening underlying demand for handbags and broader fatigue with logo-driven luxury, even as accessible and directional brands pick up share. Victoria's Secret and Zegna occupy different corners of the market, but both are demonstrating that renewed relevance, not just price or heritage, is what is moving customers through the door. What to watch is whether these gains hold through the autumn selling season, when both companies will be judged on whether momentum from marketing moments converts into sustained like-for-like growth.

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