Victoria's Secret & Company reported adjusted earnings per share of $0.95 for the second quarter ended August 1, beating the $0.75 consensus estimate by 26.7%, while net sales of $1.61 billion fell short of the $1.62 billion forecast by $10 million.
Adjusted operating income surged 125% to $124 million, up from $55 million a year earlier, and adjusted net income reached $80 million compared with $27 million in the prior-year period. Comparable sales rose 9% year-over-year and 13% on a two-year basis, marking the fifth straight quarter of positive growth. The adjusted gross margin expanded by 320 basis points to 38.8%, while the adjusted SG&A rate declined to 31.1% from 31.8%.
The company lifted its full-year 2026 guidance, raising net sales to a range of $7.10 billion to $7.18 billion from $7.03 billion to $7.13 billion previously. Adjusted operating income guidance was increased to $560 million to $590 million, and adjusted EPS to $4.45 to $4.70, both from prior ranges of $550 million to $580 million and $4.35 to $4.60, respectively. Capital spending is expected to total $220 million to $240 million for the year.
Revenue performance was mixed across segments. The Victoria's Secret bras business grew in the mid-teens, contributing roughly half of brand growth, while PINK sales rose high single digits for a fifth consecutive quarter. Beauty sales increased mid-single digits, supported by new scent launches and archive drops. Customer metrics improved, with the overall customer file up mid-single digits and new customer acquisition growing high single digits.
Shares fell 13% in premarket trading to $73.78, extending declines from the prior close of $84.81. The stock remains up 269% over the past 52 weeks, trading between a low of $23.15 and a high of $102.46. The company has approximately $150 million remaining under its share repurchase authorization.
Victoria's Secret raised its full-year net sales guidance despite the quarterly revenue miss, citing sustained momentum in core categories and disciplined cost management. The company maintained its adjusted tax rate guidance at 22.9% and expects inventories to rise 8% year-over-year, in line with prior guidance.
