second quarter of 2026
Filed Sep 3, 2026Net Sales Increased 10% to $1.611 Billion, Near High-End of Guidance; Operating Income Increased to $257 Million; Adjusted Operating Income of $124 Million Exceeds Guidance; VS&Co Raises Full Year 2026 Net Sales and Adjusted Operating Income Guidance
Second-quarter net sales increased 10%, total comparable sales increased 9%, adjusted operating income exceeded the previously communicated guidance range, and the Company raised fiscal-year net sales and adjusted operating income guidance. Reported GAAP operating income and net income were materially affected by IEEPA tariff refund recoveries excluded from adjusted results.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net SalesGAAP | $1,610,703 | – | 10.4 % |
| Costs of Goods Sold, Buying and OccupancyGAAP | $(851,419) | – | – |
| Gross ProfitGAAP | $759,284 | – | – |
| General, Administrative and Store Operating ExpensesGAAP | $(502,654) | – | – |
| Operating IncomeGAAP | $256,630 | – | – |
| Interest ExpenseGAAP | $(14,670) | – | – |
| Other IncomeGAAP | $5,782 | – | – |
| Income Before Income TaxesGAAP | $247,742 | – | – |
| Provision for Income TaxesGAAP | $59,606 | – | – |
| Net IncomeGAAP | $188,136 | – | – |
| Net Income Attributable to Noncontrolling InterestGAAP | $5,088 | – | – |
| Net Income Attributable to Victoria's Secret & Co.GAAP | $183,048 | – | – |
| Net Income Per Diluted Share Attributable to Victoria's Secret & Co.GAAP | $2.18 | – | – |
| Weighted Average Shares OutstandingGAAP | 84,152 | – | – |
| Adjusted Operating Incomenon-GAAP | $123,956 | – | – |
| Adjusted Net Income Attributable to Victoria's Secret & Co.non-GAAP | $80,245 | – | – |
| Adjusted Net Income Per Diluted Share Attributable to Victoria's Secret & Co.non-GAAP | $0.95 | – | – |
| Year-to-Date Net SalesGAAP | $3,170,294 | – | 12.7 % |
| Year-to-Date Costs of Goods Sold, Buying and OccupancyGAAP | $(1,826,062) | – | – |
| Year-to-Date Gross ProfitGAAP | $1,344,232 | – | – |
| Year-to-Date General, Administrative and Store Operating ExpensesGAAP | $(1,011,280) | – | – |
| Year-to-Date Operating IncomeGAAP | $332,952 | – | – |
| Year-to-Date Interest ExpenseGAAP | $(29,602) | – | – |
| Year-to-Date Other IncomeGAAP | $8,857 | – | – |
| Year-to-Date Income Before Income TaxesGAAP | $312,207 | – | – |
| Year-to-Date Provision for Income TaxesGAAP | $67,154 | – | – |
| Year-to-Date Net IncomeGAAP | $245,053 | – | – |
| Year-to-Date Net Income Attributable to Noncontrolling InterestGAAP | $14,314 | – | – |
| Year-to-Date Net Income Attributable to Victoria's Secret & Co.GAAP | $230,739 | – | – |
| Year-to-Date Net Income Per Diluted Share Attributable to Victoria's Secret & Co.GAAP | $2.73 | – | – |
| Year-to-Date Weighted Average Shares OutstandingGAAP | 84,501 | – | – |
| Year-to-Date Adjusted Operating Incomenon-GAAP | $204,039 | – | – |
| Year-to-Date Adjusted Net Income Attributable to Victoria's Secret & Co.non-GAAP | $130,794 | – | – |
| Year-to-Date Adjusted Net Income Per Diluted Share Attributable to Victoria's Secret & Co.non-GAAP | $1.55 | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Stores - North AmericaNo segment-specific operating driver was disclosed. | $ 897.9 | – | 8.9 % |
| DirectBeginning in the third quarter of 2025, direct sales in the European Union are reported in the International channel. | $ 439.4 | – | 8.1 % |
| InternationalResults include consolidated joint venture sales in China, royalties associated with franchise partners’ sales, wholesale sales, and direct sales in the European Union beginning in the third quarter of 2025. | $ 273.4 | – | 20.0 % |
Fiscal year 2026 and third quarter of 2026 outlook
- RevenueFiscal year 2026 net sales: $7.100 billion to $7.180 billion; third quarter of 2026 net sales: $1.570 billion to $1.600 billion
- NoteFiscal year 2026 forecasted operating income - GAAP: $689 to 719
- NoteFiscal year 2026 forecasted adjusted operating income: $560 to 590
- NoteFiscal year 2026 forecasted net income attributable to Victoria’s Secret & Co. - GAAP: $475 to 495
- NoteFiscal year 2026 forecasted adjusted net income attributable to Victoria’s Secret & Co.: $375 to 395
- NoteFiscal year 2026 forecasted net income per diluted share attributable to Victoria’s Secret & Co. - GAAP: $5.64 to 5.89
- NoteFiscal year 2026 forecasted adjusted net income per diluted share attributable to Victoria’s Secret & Co.: $4.45 to 4.70
- NoteThird quarter of 2026 operating income: $10 million to $20 million
What drove it
- Total comparable sales for the second quarter of 2026 increased 9%.
- Stores and Direct comparable sales increased 9%; Stores Only comparable sales increased 7%.
- The Company cited stronger regular-price selling and disciplined execution.
- The Company received IEEPA tariff refunds of over $140 million, representing over 95% of the IEEPA tariffs paid by the Company.
- The Company stated it is increasing strategic marketing investment and cited product innovation, partnerships and campaigns including the Angels Among Us docuseries, the Victoria’s Secret Fashion Show and holiday activations.
- Total stores increased from 1,420 at 1/31/26 to 1,430 at 8/1/26, with 48 opened and 38 closed.
Concerns
- The Company cited ongoing tariff uncertainty.
- Reported GAAP results included IEEPA tariff refund recoveries, which were excluded from adjusted results.
- General economic conditions, inflation, consumer confidence and consumer spending patterns are identified risks.
- The Company plans to increase strategic marketing investment.
- International and Direct channel presentation changed beginning in the third quarter of 2025 because direct sales in the European Union are reported in International.
What to watch
- Third-quarter 2026 net sales guidance of $1.570 billion to $1.600 billion and operating income guidance of $10 million to $20 million.
- Execution of the increased strategic marketing investment, product innovation, partnerships and planned back-half activations.
- The effect of tariff uncertainty and any further tariff-related recoveries or costs.
- Regular-price selling, comparable sales and the contribution from International, including European Union direct sales reported in that channel.
- Delivery against fiscal-year 2026 net sales guidance of $7.100 billion to $7.180 billion and adjusted operating income guidance of $560 million to $590 million.
Analysis
Victoria’s Secret & Co. reported second-quarter net sales of $1,610,703, compared with $1,459,137 in the second quarter of 2025, while total comparable sales increased 9%. Sales growth was broad across reported channels: Stores - North America increased 8.9 %, Direct increased 8.1 %, and International increased 20.0 %. The International comparison includes consolidated China joint venture sales, franchise royalties, wholesale sales and European Union direct sales that have been reported in International since the third quarter of 2025.
GAAP profitability benefited substantially from IEEPA tariff refund recoveries. Operating income was $256,630, compared with $40,959, and net income attributable to Victoria’s Secret & Co. was $183,048, or $2.18 per diluted share, compared with $16,228, or $0.20 per diluted share. The Company recognized pre-tax income of $140.3 million related to IEEPA tariff refund recoveries, including interest received, net of related costs and other items. Excluding adjusted items, adjusted operating income was $123,956 versus $55,124, while adjusted net income attributable to Victoria’s Secret & Co. was $80,245, or $0.95 per diluted share, versus $26,883, or $0.33 per diluted share.
The income statement shows gross profit of $759,284 versus $519,016, while general, administrative and store operating expenses were $(502,654) versus $(478,057). Management attributed the performance to stronger regular-price selling and disciplined execution. It also said it will increase strategic marketing investment to expand reach, deepen customer connection and build brand heat. Store count finished at 1,430 at 8/1/26, after 48 openings and 38 closures from 1/31/26.
First-half net sales were $3,170,294 versus $2,812,086, and year-to-date adjusted operating income was $204,039 versus $86,791. The Company raised fiscal-year net sales guidance to $7.100 billion to $7.180 billion from its previously communicated range of $7.030 billion to $7.130 billion, and raised adjusted operating income guidance to $560 million to $590 million from $550 million to $580 million. Third-quarter net sales are forecast at $1.570 billion to $1.600 billion, with operating income expected at $10 million to $20 million. Tariff uncertainty, increased marketing investment and the changed European Union channel reporting remain important considerations for the back half.
Management, verbatim
We delivered another strong quarter with broad-based growth across the business. Our Path to Potential strategy is working, our brands are stronger and more relevant, our customer file is growing, and we are gaining market share as product, brand identity, storytelling and execution are all working together.
Hillary Super, VS&Co Chief Executive Officer
We see significant opportunity ahead and are doubling down on what is working. We are increasing our strategic marketing investment to expand our reach, deepen customer connection, and build on the brand heat we are creating.
Hillary Super, VS&Co Chief Executive Officer
Our second quarter results demonstrate the continued strength and improving quality of the business. Net sales increased 10%, near the high-end of our guidance, while adjusted operating income exceeded our expectations.
Scott Sekella, VS&Co Chief Financial and Operating Officer
Not in the filing
stated, not guessed- Gross margin was not reported.
- Quarter-over-quarter comparisons were not reported for key metrics or segments.
- Operating cash flow was not reported.
- Free cash flow was not reported.
- Cash balance was not reported.
- Debt balance was not reported.
- Share repurchases were not reported.
- Dividends were not reported.
- Segment operating income or profitability was not reported.
- Third-quarter gross margin guidance was not reported.
- Third-quarter operating expense guidance was not reported.
- Third-quarter tax-rate guidance was not reported.
- Fiscal-year gross margin guidance was not reported.
- Fiscal-year operating expense guidance was not reported.
- Fiscal-year tax-rate guidance was not reported.
- A separate previous-release outlook section was not provided; therefore, no actual-versus-prior-guidance comparisons are included.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.