Victoria’s Secret raises full-year forecast after surprisingly strong first quarter

US lingerie retailer Victoria’s Secret & Co. exceeded its own targets and analysts' expectations in the first quarter of the 2026/27 financial year. The management subsequently raised its full-year forecast on Tuesday.

In the 13 weeks to May 2, the parent company of the Victoria’s Secret, Pink and Adore Me brands generated sales of 1.56 billion dollars. This represented an increase of 15.3 percent compared to the same quarter last year.

Sales in brick and mortar stores in North America rose by 11.3 percent to 802.8 million dollars. In direct sales, it grew by 8.4 percent to 469.4 million dollars.

Revenue from the international business increased by 44.9 percent to 287.4 million dollars. This was partly because sales in the European Union markets, previously managed in the direct sales segment, are now recorded in this division.

Lingerie retailer more than triples its operating profit

The operating profit rose to 76.3 million dollars, thanks to an improvement in the gross margin. According to the company, this was achieved through lower discounts and more efficient cost management. This was more than three times higher than in the same period of the previous year, when it was just 19.8 million dollars.

The bottom line was a net profit attributable to shareholders of 47.7 million dollars. The group had closed the first quarter of the previous year with a corresponding loss of almost 1.7 million dollars.

CEO Hillary Super praises “strong start”

In light of the latest figures, CEO Hillary Super spoke of a “strong start” to the new financial year. She emphasised that the group had exceeded its own expectations in terms of sales and profit. Double-digit growth for the Victoria’s Secret and Pink brands and in the cosmetics category contributed to this.

The recent development and “continued momentum” prompted the management to raise its forecast for the full year. The sales target, which was previously between 6.85 and 6.95 billion dollars, has been increased to between 7.03 and 7.13 billion dollars. The forecast for adjusted operating profit is now between 550 and 580 million dollars. Previously, only 430 to 460 million dollars had been forecast.

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