Victoria's Secret Reports 5% Net Sales Increase to $6.553 Billion for Fiscal Year Ending January 31, 2026

Victoria's Secret & Co. reported a net sales increase of 5% for the fiscal year ending January 31, 2026, reaching $6.553 billion, compared to $6.230 billion in the previous year. The company's gross profit also rose by $100 million to $2.384 billion, although the gross profit margin slightly decreased to 36.4% from 36.7% due to increased tariff costs and inventory reserves related to restructuring efforts. Operating income fell to $271 million, down from $310 million in 2024, primarily impacted by a $120 million impairment charge associated with the Adore Me brand's long-lived assets.

In terms of strategic developments, Victoria's Secret has been focusing on its "Path to Potential" growth plan, which emphasizes enhancing its bra authority, revitalizing the PINK brand, expanding its beauty segment, and evolving its marketing strategies. The company operates approximately 860 stores across the U.S., Canada, and China, with a significant international presence through franchise and wholesale arrangements in about 70 countries. The total number of company-operated stores decreased slightly from 882 in 2025 to 858 in 2026, reflecting a strategic shift in store management.

The company reported a notable increase in international sales, which surged by 27% to $967 million, driven by strong performance in China and other international markets. In contrast, North American store sales grew by 3%, while direct channel sales remained flat. The total customer engagement metrics showed improvements, with increased average transaction values and traffic in North American stores, although overall traffic saw a slight decline.

Victoria's Secret ended the fiscal year with cash and cash equivalents of $518 million, a significant increase from $227 million in the previous year. The company generated $499 million in operating cash flows, up from $425 million in 2024. Looking ahead, Victoria's Secret aims to manage costs while investing in product innovation and enhancing customer experiences, positioning itself for sustainable long-term growth despite ongoing challenges in the global trade environment, including tariff impacts and economic uncertainties.