New York, December 06, 2025
Victoria’s Secret & Co. reported stronger-than-expected third-quarter results for 2025 and raised its full-year guidance, driven by solid global sales growth, improved margins, and expanded international presence. The company’s improved earnings reflect effective strategies implemented across its operations.
Key Financial Performance
Victoria’s Secret posted net sales of $1.472 billion for Q3 2025, marking a 9 percent increase year-over-year. Comparable sales growth reached 8 percent, surpassing both prior guidance and last year’s 3 percent growth. Adjusted operating income broke even this quarter, a significant turnaround from the $28 million loss reported in Q3 2024. Adjusted net loss per share was $0.27, more than 50 percent better than expectations. Reported net loss narrowed to $37 million from $56 million a year earlier.
Segment and International Growth
Growth was broad-based across Victoria’s Secret’s main segments, including Victoria’s Secret, PINK, and the Beauty category. International sales surged 34 percent year-over-year to $265 million. Strong digital performance in China and other Asian markets contributed to this increase, supported by expanded partner-operated stores and joint ventures. At the end of the quarter, the company operated 1,404 retail locations globally, with ongoing strategic optimization in North America.
Profitability Drivers
The quarter’s improved profitability stemmed from disciplined cost management, reduced promotional activity, and a focus on higher full-price selling. These efforts led to a 170 basis point increase in adjusted gross margin, reaching 36.5 percent, alongside stronger sales metrics including higher traffic and increased average order value.
Raised Full-Year 2025 Outlook
Buoyed by these results and strong early holiday season performance, Victoria’s Secret raised its full-year 2025 guidance. Net sales are now expected between $6.45 billion and $6.48 billion, up from the previous $6.33 billion to $6.41 billion range. Forecasted operating income was increased to $350 million–$375 million from $270 million–$320 million. Adjusted earnings per share guidance was also raised to $2.40–$2.65, exceeding the prior $1.80–$2.20 forecast.
The company cited broad-based strength across product categories and confidence in cost controls as key factors behind the upgraded outlook.
Strategic Implications and Market Impact
Victoria’s Secret’s Q3 2025 performance signals a successful turnaround under current leadership, with improvements in profitability and international expansion validating its strategic approach. The notable reduction in markdowns alongside sales growth highlights effective inventory and pricing management. Investor confidence responded positively, reflected in a sharp rise in shares following the earnings release. These outcomes position the company for its strongest annual financial performance in recent years, with operating income now expected to nearly double prior estimates.