Victoria’s Secret & Co. (NYSE:VSCO) stock gained after the company reported second-quarter results on Thursday. Revenue rose 3% year over year (Y/Y) to $1.46 billion, beating the analyst consensus estimate of $1.41 billion. Total comparable sales for the quarter increased 4% Y/Y.
Also Read: Victoria’s Secret Analyst Flags Profit Pressure, Keeps Rating Amid Tariff And Cyber Headwinds
Sales were led by 3.1% growth in North America and 21.8% growth from the International business.
Adjusted operating income stood at $55.1 million, compared to $62.3 million in the same quarter last year.
Adjusted EPS of $0.33 beat the analyst consensus estimate of $0.11, versus guidance for adjusted EPS of $0.00-$0.15.
Victoria's Secret & Co. CEO Hillary Super highlighted that the company built momentum in the second quarter, delivering sales and operating income that exceeded guidance. She emphasized that comparable sales grew across Victoria's Secret and PINK, in both North America and global markets, as well as in stores and online.
CFO and COO Scott Sekella noted that the company expanded its gross margin rate during the quarter despite tariff challenges, attributing the improvement to disciplined inventory management and a refined promotional strategy. He acknowledged ongoing macroeconomic uncertainty but expressed optimism for the second half of the year, citing a strong pipeline of new products and enhanced customer experiences.
Outlook: For the third quarter, Victoria’s Secret expects net sales of $1.390 billion-$1.420 billion against $1.359 billion analyst estimate and adjusted EPS loss of $(0.55)-$(0.75) versus the $(0.56) consensus estimate. It expects an adjusted operating loss of $35 million to $55 million.
The company expects fiscal 2025 net sales to be between $6.330 billion and $6.410 billion, compared to prior guidance of $6.200 billion to $6.300 billion, versus an estimated $6.254 billion. It reiterated an adjusted operating income range of $270 million to $320 million, including the impact of tariffs.
Victoria’s Secret stock plunged 45% year-to-date.
VSCO Price Action: Victoria's Secret & Co. shares are up 7.64% at $24.52 premarket at last check Thursday.
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