Since the 2025 Victoria's Secret Fashion Show held at Steiner Studios the lingerie brand's share price has soared. (Photo by Gilbert Flores/Variety via Getty Images)
Variety via Getty Images
Victoria’s Secret has delivered one of its strongest quarterly performances in years, signaling that the retailer’s ongoing transformation efforts may finally be gaining traction in an increasingly competitive lingerie market.
The company reported first quarter revenues of $1.56 billion for the period through May 2, a 15% increase from the previous year and ahead of Wall Street expectations, which saw shares soar by nearly 50%. Comparable sales rose 13%, marking the fourth consecutive quarter of positive growth and underscoring improving consumer demand across its core businesses.
Profitability also improved sharply. Victoria’s Secret posted net income of $48 million, or $0.56 per diluted share, in sharp contrast with a net loss of $2 million a year earlier. Adjusted earnings reached $0.60 per share, significantly ahead of analyst forecasts.
The results prompted management to raise its outlook for both the current quarter and the full fiscal year. The company now expects annual sales of between $7.03 billion and $7.13 billion, up from its previous forecast range of $6.85 billion to $6.95 billion. Adjusted operating income is projected to reach between $550 million and $580 million.
Chief Executive Hillary Super attributed the performance to a combination of product innovation, stronger storytelling and clearer brand positioning.
“Our customer responded strongly to our product innovation, emotionally resonant storytelling and distinct brand projection,” Super said, highlighting growth in customer acquisition, full-price selling and demand across multiple product categories and geographic markets.
The performance marks another milestone in Victoria’s Secret’s efforts to reinvent itself after years of declining relevance. Once synonymous with the lingerie category, the retailer spent much of the past decade losing market share as consumers gravitated toward newer brands that emphasized comfort, inclusivity and body positivity.
Today, Victoria’s Secret is attempting to balance its heritage as a fashion-led lingerie brand with a more contemporary approach. The company has broadened its product assortment, diversified its marketing and focused on reaching younger shoppers without alienating its core customer base.
Victoria's Secret has a well established and international store network, Christmas themed underwear.
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Investments in beauty, sleepwear, activewear and digital capabilities are also helping the retailer reduce its dependence on traditional bra sales.
The broader U.S. lingerie market has changed dramatically since Victoria’s Secret dominated the category in the early 2000s. Consumers increasingly prioritize comfort, versatility and authenticity over overtly aspirational marketing and the ‘beautiful people’ image that Victoria’s Secret once epitomized.
Brands such as Aerie have gained market share by promoting body positivity and inclusive sizing, while Skims has reshaped consumer expectations around shapewear and essentials through celebrity-driven marketing and product innovation. Premium direct-to-consumer players including ThirdLove and Cuup have also built loyal followings by emphasizing fit, comfort and online-first shopping experiences.
At the same time, established apparel retailers have expanded their presence in intimates. Companies such as Abercrombie & Fitch and Gap Inc. have invested in adjacent categories that compete for the same consumer spending, increasing pressure on specialist lingerie retailers.
Despite these challenges, Victoria’s Secret retains significant advantages. The company operates approximately 1,420 stores across about 70 countries, giving it one of the largest physical footprints in the sector. That scale provides substantial brand visibility and omnichannel capabilities that many newer competitors lack.
Investors will be watching closely to determine whether the retailer can sustain its recent momentum. While strong sales growth and improving margins suggest the turnaround is gaining credibility, the company still faces a highly fragmented market where consumer tastes continue to evolve rapidly.
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