Victoria's Secret & Co. raised its fiscal 2026 sales, adjusted operating income and adjusted earnings outlook following a second quarter marked by stronger full-price selling and broad-based brand growth. Second-quarter net sales rose 10.4% to $1.611 billion, while adjusted earnings of 95 cents per share increased 187.9% year over year and beat the Zacks Consensus Estimate of 78 cents by 21.8%. The company now expects fiscal 2026 net sales of $7.10-$7.18 billion, up from its prior range of $7.03-$7.13 billion, implying growth of 8%-10% from fiscal 2025 sales of $6.553 billion. Adjusted operating-income guidance increased to $560-$590 million from $550-$580 million, and adjusted earnings guidance rose to $4.45-$4.70 per share from $4.35-$4.60. Adjusted gross margin expanded 320 basis points year over year to 38.8%, with roughly two-thirds of the improvement coming from higher merchandise margin, and adjusted operating income rose 125% to $124 million. Bras remained the primary growth engine, rising in the mid-teens and driving about half of Victoria's Secret brand growth, while PINK increased in the high single digits and Beauty posted mid-single-digit growth, extending its sales-growth streak to 12 consecutive quarters.
Victoria's Secret & CoRaised fiscal 2026 sales, operating income and EPS guidance after Q2 beat, with adjusted EPS up 187.9% and gross margin up 320 bps.
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