EarningsQ2 2026 Earnings Report
MX:VSXY Q2 2026 EPS Results
Actual EPS$17.08
Consensus EPS$13.92
Beat/MissBeat by +$3.16
One Year Ago EPS$5.93
MX:VSXY Q2 2026 Revenue Results
Actual Revenue$28.97B
Expected Revenue$29.12B
Beat/MissMissed by -$158.98M
YoY Revenue Growth+10.42%
Earnings Announcement Details
QuarterQ2 2026
Date09/03/2026
TimeBefore Open
Conference CallThursday, September 3, 2026
MX:VSXY Upcoming Earnings
Victoria's Secret's next earnings date is estimated for December 2, 2026, based on past reporting schedules.
Q2 2026 Earnings Call Audio
MX:VSXY Q2 2026 Earnings Call
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Q2 2026 Earnings Slide Deck
Q2 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was strongly positive, with broad-based sales and customer growth, significant regular-price and margin improvement, successful innovation across bras and beauty, strong liquidity, and raised fiscal 2026 guidance. The main challenges were June's inventory-related sales pressure, expected moderation in international growth, tariff and transportation costs, higher Q3 SG&A, and a Q3 EPS outlook that still ranges from a loss to break-even. Highlights significantly outweighed the lowlights.Company Guidance
Strong Q2 Sales and Profit Outperformance
Net sales increased 10% year over year to $1.611 billion, near the high end of guidance. Q2 comp sales increased 9% and 13% on a 2-year basis. Adjusted operating income was $124 million, compared with $55 million last year, and exceeded the guidance range of $90 million to $100 million. Adjusted net income per diluted share nearly tripled to $0.95 from $0.33 and exceeded the guidance range of $0.65 to $0.75.
Fifth Consecutive Quarter of Positive Comps
The company delivered its fifth consecutive quarter of positive comparable sales, with growth broad based across Victoria's Secret, PINK, beauty, channels, and international markets.
Customer File and Acquisition Growth
The customer file increased mid single digits year over year for the fourth consecutive quarter. New customer acquisition grew high single digits, outpacing total file growth, with particularly strong growth among customers aged 18 to 24. Customers were returning at a higher rate, coming back faster, and spending more when they returned.
Improved Regular-Price Selling and AUR
Regular-price selling increased in the low double digits, while second-quarter AUR increased high single digits, accelerating from mid single-digit growth in Q1. Total units increased low single digits, including regular-price units up high single digits. The company continued reducing promotional activity across event count, levels, and duration.
Victoria's Secret Bra and Intimates Momentum
The bra business grew mid teens, driven by core franchises and new innovation, and Victoria's Secret also grew mid teens, with bras contributing approximately half of the brand's growth. The momentum in bras helped drive high teens growth in panties and mid teens growth in sleep.
Successful Bra Innovation
The Flex Factor balcony launch drove incremental growth in both Body by Victoria and the broader Balconet business. The Very Sexy Envy fashion bra launched with the 25th anniversary Very Sexy campaign and was already in the company's top 10. Management said the company has a full pipeline of additional technical and fashion innovation.
PINK Delivered Continued Growth
PINK grew high single digits and delivered its fifth consecutive quarter of growth, with strength in bras, panties, and apparel. PINK apparel delivered its eighth consecutive quarter of growth, with denim, linen, and fleece performing well.
Marshmallow Bra Launch at PINK
Marshmallow, PINK's first new bra pillar in 2 years, introduced 4 new frames with easy sizing, wireless support, and soft fabrication. Management said the launch drove outsized results and that the new frame was 100% incremental while the other 2 franchises continued to grow in July.
Beauty Growth and Innovation
Beauty grew mid single digits in Q2 and delivered its 12th consecutive quarter of sales growth. Regular-price selling increased high single digits. Growth was led by the core, especially fine fragrance and mist, supported by 6 incremental scents introduced during the year, shimmer offerings, archive drops, and the Strawberry Bizzu launch.
Strong Response to Fragrance Archive Drops
The original PINK square-bottle scents sold out digitally in less than a day during Pink Friday. Management said the response reinforced customers' emotional connection to the company's fragrance heritage.
Broad Marketing and Customer Engagement Gains
The company increased use of influencers, social-first content, TikTok Live, app push, CRM, paid search, and paid social. Paid social was the best-performing channel for bringing in customers during the quarter. App growth was up 30% last quarter, on top of double growth from the prior year.
Fashion Show and Angels Among Us Expansion
The company is evolving the fashion show from a single event into an ongoing franchise, with dedicated watch parties, YouTube distribution, and live streaming on social platforms. The Angels Among Us search will be supported by a Boardwalk Pictures docuseries premiering globally on YouTube on September 27.
International Sales Growth
International reported net sales grew 20% in Q2, including retail comp sales growth of low teens. Growth was led by China and European digital business, with China described as the company's number 1 growth area within international. Excluding the reporting shift of European digital sales, international sales grew 10%. Full-year international net sales are forecast to increase approximately 20%.
Gross Margin and SG&A Leverage
Adjusted gross margin dollars increased 20% to $626 million. The adjusted gross margin rate was 38.8% versus 35.6% last year and 30 basis points above the high end of guidance. Approximately two-thirds of the year-over-year expansion was attributed to higher merchandise margin from regular-price selling and reduced promotions, with the remainder from buying and occupancy leverage. Adjusted SG&A was $502 million, with the SG&A rate improving to 31.1% from 31.8%.
Tariff Refund and Strong Liquidity
The company received $140 million of IEPA tariff refunds, representing over 95% of IEPA tariffs paid, and excluded the refunds from non-GAAP results. The quarter ended with $522 million of cash, $334 million above last year, and no outstanding ABL borrowings versus $75 million last year.
Raised Fiscal 2026 Guidance
Fiscal 2026 net sales guidance increased to $7.1 billion to $7.18 billion from $7.03 billion to $7.13 billion, representing 8% to 10% year-over-year growth versus prior guidance of 7% to 9%. Adjusted operating income guidance increased to $560 million to $590 million from $550 million to $580 million, compared with $403 million last year. Adjusted EPS guidance increased to $4.45 to $4.70 from $4.35 to $4.60, compared with $3.00 last year.
Healthy Inventory and Store Investment Position
Second-quarter inventories increased 8% year over year, in line with guidance, and management described inventory as healthy. Fiscal 2026 capital expenditures remain planned at $220 million to $240 million, or approximately 3% of sales. Store counts are expected to be flat to slightly up, with 45% of the global fleet in the Store of the Future design, including 30% in North America and 55% internationally.
Expected Q3 Profitability
The company forecast Q3 net sales of $1.57 billion to $1.6 billion, representing approximately 7% to 9% growth and 16% to 18% growth on a 2-year basis. Q3 operating income is expected to be $10 million to $20 million versus approximately breakeven last year.
MX:VSXY Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed