Overview

• US lingerie retailer's Q1 net sales rose 15% yr/yr, exceeding company guidance

• Adjusted EPS for Q1 was $0.60, up from $0.09 a year earlier

• Company raised full-year 2026 net sales and adjusted operating income guidance

Outlook

• Victoria's Secret raises full-year 2026 net sales guidance to $7.03-$7.13 bln

• Company now sees 2026 adjusted operating income at $550-$580 mln, up from prior guidance

• Victoria's Secret forecasts Q2 net sales of $1.59-$1.615 bln and operating income of $90-$100 mln

Result Drivers

• SALES GROWTH ACROSS BRANDS - Co said double-digit sales growth at Victoria’s Secret, PINK, and Beauty, plus fourth consecutive quarter of positive comps, drove results

• HIGHER REGULAR-PRICE SELLING - Co attributed broad-based gross margin improvement to increased regular-price selling and reduced promotions, per CFO Scott Sekella

• CUSTOMER ACQUISITION - Co said double-digit growth in new customer acquisition and increased brand relevance contributed to Q1 performance

Company press release: ID:nGNX4rTxKj

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 Sales		$1.56 bln

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the apparel & accessories retailers peer group is "buy"

• Wall Street's median 12-month price target for Victoria's Secret & Co is $66.44, about 22.4% NOT AVAILABLE its June 1 closing price of $54.30

• The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 20 three months ago

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