Victoria's Secret Reports 9% Sales Increase and $37 Million Net Loss in Q3 2025

Victoria's Secret & Co. reported a net sales increase of 9% for the third quarter of 2025, reaching $1.472 billion compared to $1.347 billion in the same period last year. The company's year-to-date sales also rose by 4%, totaling $4.284 billion, up from $4.124 billion in 2024. The growth in sales was driven by a 5% increase in North American store sales and a 34% surge in international sales, particularly in China. Despite the revenue growth, the company recorded a net loss of $37 million for the third quarter, an improvement from a loss of $56 million in the prior year, with a net loss per diluted share of $0.46.

The financial performance reflects a strategic focus on enhancing customer engagement and product offerings. The company noted improvements in average transaction value and conversion rates in its North American stores, although overall traffic remained flat. The direct sales channel also saw a 4% increase, attributed to higher traffic and average transaction values, despite a decrease in conversion rates. The international segment's growth was bolstered by increased sales in China and a shift in reporting direct sales in the European Union to the international channel.

Operationally, Victoria's Secret has been restructuring its executive leadership team, which included significant changes in management roles. The company incurred $9 million in pre-tax expenses related to these restructuring activities in the third quarter of 2025. Additionally, the company continues to manage the impact of tariffs, which negatively affected operating income by approximately $15 million in the third quarter. The company also faced challenges from a security incident in May 2025, which temporarily disrupted operations and is estimated to have impacted net sales by around $20 million.

As of November 1, 2025, Victoria's Secret had approximately 860 stores across the U.S., Canada, and China, with a total of 1,404 stores globally, including partner-operated locations. The company reported a cash balance of $249 million, up from $161 million a year earlier, and total assets of $5.134 billion. Long-term debt stood at $1.347 billion, reflecting a significant increase from $973 million at the beginning of the fiscal year, primarily due to borrowings under its asset-based revolving credit facility.

Looking ahead, Victoria's Secret aims to continue its strategic initiatives focused on brand evolution and operational excellence. The company remains committed to enhancing its product offerings and customer experience while navigating the complexities of the retail environment, including macroeconomic challenges and evolving consumer preferences. The management expressed confidence in their ability to achieve long-term profitable growth while maintaining adequate liquidity to support ongoing operations and investments.