Overview

* Victoria's Secret Q2 sales rise 3% to $1.459 bln, beating expectations, per LSEG data

* Adjusted EPS for Q2 exceeds expectations

* Company raises full-year 2025 sales guidance, indicating confidence in growth

Outlook

* Company raises full-year 2025 sales guidance to $6.330 bln-$6.410 bln

* Victoria's Secret expects Q3 net sales of $1.390 bln-$1.420 bln

* Company forecasts Q3 adjusted operating loss of $35 mln-$55 mln

* Victoria's Secret sees Q3 adjusted net loss per share of $0.55-$0.75

Result Drivers

* BRAND EVOLUTION - Sales growth attributed to evolving Victoria's Secret and PINK brands, per CEO Hillary Super

* PRODUCT INNOVATION - Product innovation and storytelling drove customer engagement, contributing to sales increase

* GROSS MARGIN EXPANSION - Gross margin improved despite tariff headwinds, due to inventory management and promotional strategies, per CFO Scott Sekella

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Sales Beat $1.46 $1.41

bln bln (9

Analysts

)

Q2 ADJ $0.33 $0.11

EPS (10

Analysts

)

Analyst Coverage

* The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 5 "hold" and 3 "sell" or "strong sell"

* The average consensus recommendation for the apparel & accessories retailers peer group is "buy."

* Wall Street's median 12-month price target for Victoria's Secret & Co is $21.00, about 8.5% below its August 27 closing price of $22.78

* The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 9 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)