By Sabrina Escobar
Victoria's Secret topped earnings and sales expectations and issued full-year guidance ahead of Wall Street's projections, yet the stock was falling in premarket trading Thursday.
The company's fourth-quarter sales rose 8% year over year to $2.3 billion, slightly ahead of estimates for $2.2 billion, according to FactSet. The uptick in sales stemmed from a combination of new customer acquisition and higher price points driven by fewer discounts.
Adjusted earnings per share of $2.77 were better than the $2.52 analysts were calling for.
Victoria's Secret stock fell 6.7% in premarket trading Thursday while futures tracking the S&P 500 were flat. Shares have risen 11% this year, and a whopping 194% over the past 12 months, reflecting market enthusiasm over the company's turnaround strategy led by CEO Hillary Super.
The company kicked off the 2026 fiscal year with a strong Valentine's Day, and expects momentum to continue.
Victoria's Secret predicts full-year net sales will range from $6.850 billion to $6.950 billion, above the $6.8 billion Wall Street had penciled in.
Operating income is projected to be between $430 million and $460 million, compared to Street expectations of $421 million. Guidance assumes tariffs will remain at the same levels as before the Supreme Court's ruling that struck down many of the Trump administration's most sweeping duties, given the fluctuating nature of the trade environment.
Tariffs took out about $85 million in adjusted operating income in the 2025 fiscal year.
The company also said it had begun a strategic review of styling company DailyLook, a "non-core asset" acquired when Victoria's Secret bought lingerie brand Adore Me in 2022. The review reflects the company's commitment to focusing on its two core brands, Victoria's Secret and Pink.
Write to Sabrina Escobar at sabrina.escobar@barrons.com
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March 05, 2026 07:53 ET (12:53 GMT)
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