Victoria’s Secret & Co. continued to show a little extra oomph in the fourth quarter, breezing past Wall Street’s sales and profit expectations as it focuses on its core businesses.
Hillary Super, chief executive officer, described the quarter as “exceptional” and said the company’s strategic plan was working.
“Our customer responded enthusiastically to our product and marketing, as demonstrated by growing new customer acquisition and increased AURs,” Super said in a statement.
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The company, which owns both Victoria’s Secret and Pink and has 1,420 stores, drove sales up 8 percent to $2.3 billion in the quarter ended Jan. 31. Comparable sales also grew 8 percent.
While net income tallied $183.6 million, adjusted profits rose by 10.2 percent to $238 million, or $2.77 a diluted share. That was 24 cents better than the $2.53 in EPS analysts projected.
For the full year, operating income hit $403 million despite $85 million in tariffs pressure.
“We enter fiscal 2026 from a position of strength,” Super said. “With a clear brand vision, a faster and more agile operating model, and a strong pipeline of product and brand moments ahead, we are confident in our ability to deliver profitable growth.”
This year, the company is looking for sales to grow to $6.9 billion to $7 billion, compared with $6.6 billion in 2025. That is expected to push operating income to between $430 million and $460 million, up from adjusted operating income of $403 million last year.
Victoria’s Secret is also taking a hard look at parts of its business and said it had initiated a “strategic review of DailyLook, a non-core asset” that sends styled boxes of looks to users.
“Acquired through the Adore Me transaction in December 2022, DailyLook has grown rapidly and achieved meaningful scale,” the company said. “As part of VS&Co’s continued focus on its core business, the company is evaluating opportunities to position DailyLook for long-term success.”
That signals the business could be sold soon.
The retailer added that it “continues to assess the Adore Me business and explore opportunities to optimize it within the broader portfolio.”
