Victoria’s Secret (VSCO) Stock Falls Despite Strong Earnings Beat

TLDR

• Victoria’s Secret beat Q4 earnings and revenue expectations, with EPS of $2.77 vs $2.52 expected
• Sales rose 8% year-over-year to $2.27 billion for the quarter
• Comparable sales grew for three quarters in a row — the best streak in four years
• Full-year sales guidance of $6.85B–$6.95B topped Wall Street’s $6.8B estimate
• Stock dropped over 6% in premarket trading despite the strong results

Victoria’s Secret posted a strong holiday quarter, beating Wall Street on both earnings and revenue. But investors didn’t seem impressed — the stock dropped more than 6% in premarket trading Thursday.

Adjusted EPS came in at $2.77, ahead of the $2.52 analysts had penciled in. Revenue hit $2.27 billion for the quarter, up 8% from $2.11 billion a year ago, and above the $2.23 billion expected.

Net income for the quarter was $183.63 million, or $2.14 per share. That compares to $193.4 million, or $2.33 per share, in the same period last year.

Victoria’s Secret & Co., VSCO

The quarter ended January 31. Comparable sales jumped 8%, well ahead of the 5.6% increase analysts had forecast, per StreetAccount.

It marks the third consecutive quarter of comparable sales growth — the longest such run in at least four years, according to FactSet data.

CEO Hillary Super, who has been in the role for roughly 18 months, has been steering a turnaround focused on product, marketing, and brand relevance. The strategy leans heavily on the Pink line, the company’s beauty business, and reasserting itself in the bra category.

Guidance Tops Estimates

For Q1, the company expects sales between $1.49 billion and $1.53 billion, ahead of the $1.42 billion Wall Street had expected.

Full-year sales guidance came in at $6.85 billion to $6.95 billion, topping the $6.8 billion consensus estimate.

Operating income is projected at $430 million to $460 million, compared to Street expectations of $421 million.

The guidance assumes tariffs stay at current levels — before the Supreme Court struck down several of the Trump administration’s broader trade duties. Tariffs hit adjusted operating income by about $85 million during the 2025 fiscal year.

DailyLook Under Review

Victoria’s Secret said it has kicked off a strategic review of DailyLook, a styling brand it acquired as part of the Adore Me deal in 2022.

It also took $119.6 million in impairment charges related to the Adore Me assets during the quarter.

The company said it kicked off fiscal 2026 with a strong Valentine’s Day performance, with momentum continuing into the new year.

VSCO has risen 11% year-to-date and about 194% over the past 12 months heading into Thursday’s session.

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