Victoria's Secret & Co. raised its fiscal 2026 net sales guidance to $7.10-$7.18 billion, implying growth of 8%-10% from fiscal 2025, as the retailer reported faster growth, wider margins and stronger earnings expectations. Adjusted earnings came in at 95 cents per share, up 187.9% year over year and 21.8% above the Zacks Consensus Estimate of 78 cents, while projected earnings growth for the current fiscal year stands at 56.3%. The improvement was broad-based: Bras grew in the mid-teens in the second quarter, PINK increased in the high single digits, Beauty posted its 12th consecutive quarter of sales growth, and reported international sales rose 20% with China remaining a leading growth market. Management expects 45% of the global fleet to operate in the Store of the Future format by fiscal 2026-end, though tariff uncertainty and rising transportation costs are expected to offset part of the third-quarter gross-margin benefit, and the adjusted SG&A rate is projected at about 37.5%, up from 36.5% a year earlier. VSXY trades at 14.13X forward 12-month earnings, above the industry's 12.18X multiple and well above its five-year median of 9.14X, and carries a Zacks Rank #3 (Hold) with a Momentum Score of F.
Victoria's Secret & CoVictoria's Secret raised fiscal 2026 sales guidance and posted adjusted EPS of 95 cents, up 187.9% YoY and 21.8% above consensus.
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