Hollywood figured out years ago that audiences will pay for the familiar, done well again. Victoria's Secret spent the second quarter running the same trick in retail. How? By deploying a two pronged strategy. It revived a 1990s PINK Square fragrance line which then sold out online in a day, sent a 25th anniversary bra, with a renewed silhouette, to Rome, and cast a new Angel for its October fashion show through a nationwide search filmed for a docuseries.
The Q2 results were strong enough to justify the strategy, but the question now is: can the same playbook survive a investment-forward second half?
Net sales rose 10% year over year to $1.611 billion in the second quarter, near the high end of guidance. Adjusted operating income more than doubled to $124 million from $55 million a year earlier, and adjusted earnings per share came in at $0.95, above a guided range of $0.65 to $0.75. It was the fifth straight quarter of positive comparable sales.
"When I joined Victoria's Secret two years ago, I saw iconic brands with deep emotional connection, but significant untapped potential," Chief Executive Officer Hillary Super told analysts on the call. "Today, we are attracting more customers, winning market share, and strengthening the value proposition for both brands."
Bras drove most of the growth, up in the mid-teens. PINK's new Marshmallow style, its first new bra style in two years, launched largely through creator content, instead of the retailer's usual marketing route. Beauty posted its twelfth straight quarter of growth, helped by the fragrance revival and a new scent, that Chief Marketing and Customer Officer Elizabeth Preis said is still accelerating.
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A Quarter That Might Still Show a Loss
Victoria's Secret is forecasting third-quarter operating income of $10 million to $20 million, against a near-breakeven result a year ago. Chief Financial and Operating Officer Scott Sekella tied the improvement directly to spending on the Fashion Show and its companion series, Angels Among Us, calling the investment sustainable.
"We're proud that we've been able to turn positive in Q3 because we know that's a heavy investment quarter," Sekella said, pointing to stronger regular-price selling as what makes the spending affordable. He said marketing currently runs at just over 7% of sales, with room to move toward the high single digits over the next couple of years.
Preis said the payoff is already visible in how the company's newer customers behave. "We are bringing more of them back to us, they are coming back faster, and they are actually spending more when they do come back," she said, pointing to fourth consecutive quarter of customer file growth.
However, Super told analysts the company deliberately entered its semiannual sale with less discounted inventory, aiming to cut reliance on promotions. "As the sale progressed, lower inventory pressured the June top line," she said. International sales grew 20% on a reported basis, but Sekella said that figure included a reporting shift tied to European distribution.
Victoria's Secret raised its full-year guidance alongside the results, now expecting net sales of $7.10 billion to $7.18 billion.
The Fashion Show itself carries baggage the company is still working through. Victoria's Secret canceled the event in 2019 after ratings fell and the brand faced backlash over comments its then marketing chief made about excluding transgender models. It returned in 2024 after a six-year absence, drawing mixed reviews, and its 2025 edition drew renewed criticism online.
For a brand still explaining a six-year-old cancellation, the line remains the same one it always was: the show must go on. Whether investors keep applauding as long as the company keeps paying for it is the real test of Q3.
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