Victoria’s Secret delivered a first quarter marked by broad-based growth, as management attributed the results to strong customer acquisition, reduced promotional activity, and compelling brand campaigns across its Victoria’s Secret, PINK, and Beauty segments. CEO Hillary Super highlighted that the company saw double-digit gains in new customers, especially among both lower and higher income brackets, and noted that “the strongest growth came from customers and households earning under $50,000 annually and over $200,000.” The quarter’s performance was further supported by momentum in digital engagement and an effective reduction in markdowns.
Is now the time to buy VSXY? Find out in our full research report (it’s free for active Edge members).
Victoria's Secret (VSXY) Q1 CY2026 Highlights:
- Revenue: $1.56 billion vs analyst estimates of $1.52 billion (15.3% year-on-year growth, 2.6% beat)
- Adjusted EPS: $0.60 vs analyst estimates of $0.32 (90.2% beat)
- Adjusted Operating Income: $80.08 million vs analyst estimates of $40.97 million (5.1% margin, 95.4% beat)
- The company lifted its revenue guidance for the full year to $7.08 billion at the midpoint from $6.9 billion, a 2.6% increase
- Operating Margin: 4.9%, up from 1.5% in the same quarter last year
- Locations: 1,423 at quarter end, up from 1,378 in the same quarter last year
- Same-Store Sales rose 13% year on year (-1% in the same quarter last year)
- Market Capitalization: $6.06 billion
While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Victoria's Secret’s Q1 Earnings Call
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Matthew Boss (JPMorgan) asked about the drivers of traffic acceleration despite reduced promotions. CEO Hillary Super emphasized the impact of resonant content, optimized media mix, and a 50% increase in app downloads as key contributors.
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Corey Tarlowe (Jefferies) questioned share gains among diverse income groups and loyalty-building strategies. Super described broad-based growth and brand positioning that appeals to both lower and higher income cohorts, attributing success to emotional messaging and product alignment.
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Adrienne Yih (Barclays) inquired about the effectiveness of targeting 18- to 24-year-olds and the impact of GLP-1 adoption. Super discussed a focused approach on youthful, fashion-forward products and noted only minimal impact from GLP-1 usage on sizing trends.
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Marni Shapiro (The Retail Tracker) asked for updates on the VSX activewear business and the role of scarcity-driven product drops. Super responded that VSX has been rightsized for now, with future plans for expansion, and highlighted the effectiveness of scarcity models for both Victoria’s Secret and PINK.
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Brooke Roach (Goldman Sachs) probed willingness to reinvest marketing gains. Super confirmed that increased marketing investment is driving results and will continue to be evaluated as a growth lever in future quarters.
Catalysts in Upcoming Quarters
Looking ahead, the StockStory team will be watching (1) the effectiveness of upcoming product launches and collaborations in sustaining customer engagement and sales momentum, (2) management’s ability to maintain margin improvement while navigating ongoing tariff and supply chain pressures, and (3) further expansion in digital engagement, particularly through app growth and targeted marketing. Success on these fronts will be essential to maintaining the current trajectory.
Victoria's Secret currently trades at $76.80, up from $54.30 just before the earnings. At this price, is it a buy or sell? See for yourself in our full research report (it’s free).
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