For a brand renowned for glossy fashion shows and pink shopping bags, the real surprise lately has been happening in its financials. After years of uneven sales and shifting consumer tastes, Victoria's Secret & Co. has started showing signs of a comeback, and the numbers are justifying the narrative.
In its latest results, the company reported fourth-quarter sales of $2.27 billion, an 8% increase year-over-year, even surpassing the expectations that Wall Street had pencilled in. Even adjusted earnings have left the analysts in surprise, coming in at $2.77 per share comfortably above forecasts.
That momentum carried the whole year of 2025 and helped the company cap off a strong fiscal year. Victoria’s Secret reported $6.5 million in net sales for 2025 representing roughly 5–6% growth from the prior year as the brand leaned harder into full-price sales and fewer discounts.
A comeback with a few caveats
Management now expects Victoria’s Secret to generate between $6.85 billion and $6.95 billion in revenue for fiscal 2026, if the momentum holds that implies a 5–6% growth in sales. The sky is the limit for Victoria secret at this point even profitability is expected to improve as well. The company is projecting $430 million to $460 million in operating income as it vies to focus on higher-margin products and tighter inventory management.
If we’re speaking in near term, Victoria’s Secret is anticipating Q1 2026 sales to be nothing short of lucrative between $1.49 billion and $1.52 billion. It's safe to say demand isn’t going to cool down anytime soon. Still, the outlook isn’t without risks as rising tariffs are expected to add roughly $160 million in gross costs this year. This remains to remind that macro pressures are a key variable in the retailer’s turnaround story.
Even so, on a broader scale this trend is hard to dismiss: after years of declining relevance, Victoria’s Secret is rejuvenating itself and bouncing back for the first time in a while, and may finally be living up to its name.
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