Victoria’s Secret (VSCO) Stock Slides Despite Crushing Q4 Earnings Expectations

Quick Summary

• Victoria’s Secret surpassed Q4 earnings and revenue projections, delivering EPS of $2.77 versus the $2.52 consensus
• Quarterly revenue climbed 8% year-over-year to reach $2.27 billion
• The company achieved three consecutive quarters of comparable sales growth — its longest winning streak in four years
• Full-year revenue outlook of $6.85B–$6.95B exceeded Wall Street’s $6.8B projection
• Shares plunged more than 6% during premarket hours despite the positive financial performance

The iconic lingerie brand Victoria’s Secret delivered impressive fourth-quarter results that exceeded analyst expectations across the board. Yet the market response was surprisingly negative — shares tumbled over 6% in Thursday’s premarket session.

The company reported adjusted earnings per share of $2.77, comfortably surpassing the analyst consensus of $2.52. Quarterly revenue reached $2.27 billion, representing an 8% increase from the prior-year period’s $2.11 billion and beating the Street’s $2.23 billion forecast.

For the quarter, net income totaled $183.63 million, translating to $2.14 per diluted share. This compares with $193.4 million, or $2.33 per share, reported in the corresponding quarter last year.

Victoria’s Secret & Co., VSCO

The reporting period concluded on January 31. Comparable store sales surged 8%, significantly outperforming the 5.6% growth rate analysts had projected, according to StreetAccount data.

This milestone represents the third straight quarter of positive comparable sales performance — the company’s longest growth streak in a minimum of four years, based on FactSet records.

CEO Hillary Super, who assumed leadership approximately 18 months ago, has been orchestrating a comprehensive turnaround initiative centered on product innovation, marketing transformation, and brand repositioning. The company’s strategy emphasizes its Pink division, expanding beauty offerings, and reestablishing dominance in intimate apparel.

Forward Outlook Exceeds Projections

For the first quarter, management anticipates revenue between $1.49 billion and $1.53 billion, surpassing the Street’s $1.42 billion expectation.

The company’s full-year revenue forecast ranges from $6.85 billion to $6.95 billion, eclipsing the analyst consensus of $6.8 billion.

Operating income is expected to land between $430 million and $460 million, compared to analyst estimates of $421 million.

The forecast is based on tariffs remaining at present levels — issued before the Supreme Court invalidated numerous Trump administration trade policies. Tariff impacts reduced adjusted operating income by approximately $85 million throughout fiscal 2025.

Strategic Assessment of DailyLook Underway

Victoria’s Secret announced it has initiated a strategic evaluation of DailyLook, a styling platform acquired through the 2022 Adore Me transaction.

Additionally, the company recorded $119.6 million in impairment charges associated with Adore Me assets during the reporting period.

Management noted that fiscal 2026 launched with robust Valentine’s Day sales results, with positive momentum carrying forward.

VSCO shares have advanced 11% year-to-date and approximately 194% over the trailing twelve months entering Thursday’s trading session.

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