Victoria's Secret reported impressive fiscal first-quarter results, with earnings per share of 60 cents, surpassing the expected 30 cents, and revenue of $1.56 billion, exceeding estimates of $1.52 billion. The company attributed its success to lower tariff costs and a shift in consumer behavior, with more customers willing to pay full price.
CEO Hillary Super highlighted consistent double-digit sales growth across various channels, including its core lingerie line and the Pink brand, particularly among younger shoppers aged 18 to 24.
The retailer raised its full-year sales forecast to between $7.03 billion and $7.13 billion, up from a previous range of $6.85 billion to $6.95 billion, and increased its adjusted operating income guidance to between $550 million and $580 million. This positive outlook comes despite some peers expressing caution about consumer spending trends.
The company's strong performance reflects a successful turnaround strategy under Super's leadership, focusing on reconnecting with its brand identity and enhancing customer experience in stores, which have proven to be a competitive advantage. Overall, Victoria's Secret's results indicate a robust recovery and growth potential in the lingerie market, appealing to a diverse customer base