Victoria’s Secret Soars on the Stock Market Following Record Results in the First Quarter of 2026

Victoria’s Secret is gaining momentum on Wall Street following the release of its first-quarter 2026 results, driven by double-digit sales growth, earnings that exceeded expectations, and an upward revision of its annual guidance. Shares of the American lingerie group rose sharply during Tuesday’s trading session, and according to WWD, shares closed up 47% at $79.86, coinciding with the first day of trading under the new ticker (the code by which a publicly traded company is identified on the stock market, ed.) “Vsxy,” chosen to replace the previous “Vsco.”

A repositioning strategy under the leadership of Hillary Super

This ticker change is part of a broader repositioning process initiated by the group under the leadership of Hillary Super, who was appointed CEO in September 2024. The CEO is leading a strategy aimed at restoring the brand’s identity to a central role, following years marked by competitive pressures, difficulties in regaining commercial momentum, and tensions with activist investors. As Reuters points out, the turnaround also involves reducing reliance on promotions and a more assertive return to that “sexy” image that the company has defined as an integral part of its DNA.

Quarterly Results Exceed Expectations

In terms of figures, during the quarter ended May 2, 2026, Victoria’s Secret reported revenue of $1.56 billion (approximately 1.34 billion euros), up 15.3% from the $1.353 billion reported for the same period last fiscal year, exceeding the initial forecast range of $1.49 billion to $1.52 billion. Comparable sales rose by 13%, marking the fourth consecutive quarter of comparable growth, according to the company’s official press release. This figure confirms the group’s turnaround, following the 1% decline recorded in the first quarter of 2025.

This improvement was seen across all major sales channels. Specifically, stores in North America generated revenue of $802.8 million, up 11.3%, while the direct-to-consumer channel grew by 8.4% to $469.4 million. International growth was even more pronounced, reaching $287.4 million, an increase of 44.9%. At the end of the quarter, the group had a total of 1,423 stores, including company-owned stores, joint ventures in China, partner-managed stores, and Adore Me.

Significant Improvement in Profitability

Profitability also showed a significant improvement. Operating income came in at $76.3 million, compared to $19.8 million in the first quarter of 2025. Adjusted operating income rose to $80.1 million, compared with $31.7 million the previous year and well above the previously communicated guidance of $32 million to $42 million. Net income attributable to Victoria’s Secret reached $47.7 million, compared to a loss of $1.7 million in the first quarter of 2025. Diluted earnings per share were 56 cents, while adjusted earnings per share reached 60 cents.

“We had a very strong start to 2026, exceeding expectations in both revenue and profitability, and building on the momentum established in the second half of last year,” Hillary Super said in the official press release. The CEO highlighted double-digit growth at Victoria’s Secret, Pink, and Beauty, as well as the contribution of product innovation, more emotional storytelling, and a more clearly defined brand identity. According to the CEO, these results reflect the progress made under the “Path to Potential” strategy, which focuses on strengthening the connection with customers, increasing brand enthusiasm, and supporting long-term growth.

Disciplined Management and Strategic Partnerships

The company also attributed the improvement in margins to stricter management of its operations. Scott Sekella, Victoria’s Secret’s Chief Financial and Operating Officer, highlighted in the official press release the contribution of increased full-price sales, reduced promotions, and cost leverage on purchasing and occupancy expenses, despite pressures related to tariffs. The executive also highlighted greater efficiency in store overhead, administrative, and operating expenses compared to the first quarter of the previous year.

The brand’s revival also involves strengthening communication and collaborations. Victoria’s Secret has revived its annual fashion show after a six-year hiatus and has ramped up its marketing efforts through partnerships with high-profile figures such as the K-pop group Twice, Hailey Bieber, and basketball player Angel Reese.

Furthermore, looking at the numbers, the quarter’s growth also highlights, according to Reuters, the polarization of consumer spending in the United States. High-income customers continue to drive spending on non-essential items, while lower-income households remain more vulnerable to inflationary pressures and economic uncertainty.

Upwardly Revised Forecasts and Share Buybacks

In light of these results, Victoria’s Secret has raised its estimates for the full 2026 fiscal year. The company now expects net revenue to range from $7.030 to $7.130 billion, up from the previous range of $6.850 to $6.950 billion, and compared to the $6.553 billion reported for fiscal year 2025. Adjusted operating income is expected to be between $550 million and $580 million, up from the previous forecast of $430 million to $460 million and compared to $403 million in 2025. For the second quarter, the company forecasts net sales of between $1.590 and $1.615 billion, compared to $1.459 billion in the second quarter of 2025, and operating income of between $90 and $100 million.

During the quarter, Victoria’s Secret also continued its shareholder return policy by repurchasing 2.2 million of its own shares for $100 million, at an average price of $45.27 per share. These buybacks are part of the $250 million program approved by the board of directors in March 2024, with $150 million still available as of May 2, 2026.

Governance Under Scrutiny and Stock Market Dynamics

However, the situation remains under scrutiny in terms of corporate governance. Indeed, Victoria’s Secret continues to face pressure from activist investor BBRc International, linked to Brett Blundy, who has urged shareholders not to support two board members—including Chairwoman Donna James—by challenging certain past decisions made by the company. However, as WWD notes, even the activist camp acknowledges the improved performance under Super’s leadership.

The sharp rise in the stock price therefore reflects a shift in market perception, but also raises expectations. According to the news agency, approximately 19% of the free float is shorted, a high level that may have contributed to the stock’s momentum through a potential short squeeze (a sharp rise in a stock’s price caused, in particular, by the forced or accelerated closing of short positions, ed.).