Victoria’s Secret hikes FY25 guidance after Q3 surpasses target

Core Insights - Victoria's Secret reported a net sales increase of 9% to $1.47 billion for Q3 FY25, surpassing previous guidance of $1.39 billion to $1.42 billion [1] - The growth is attributed to strong performance across its Victoria's Secret, PINK, and Beauty segments, as well as effective sales strategies [1][2] Financial Performance - Gross profit rose to $536.14 million in Q3 FY25, up from $468.29 million in the same quarter last year [3] - Operating loss decreased to $19 million from $47 million year-over-year, while net loss narrowed to $37.35 million, translating to a loss per diluted share of $0.46 compared to $0.71 in Q3 FY24 [3] - Adjusted gross margin increased by 170 basis points due to reduced promotional activities and a higher proportion of regular-priced sales [4] Future Outlook - For the full year 2025, net sales are projected between $6.45 billion and $6.48 billion, an increase from previous guidance of $6.33 billion to $6.41 billion [5] - Adjusted operating income for the full year is expected to range from $350 million to $375 million, up from prior guidance of $270 million to $320 million [5] - Q4 FY25 projected net sales are between $2.17 billion and $2.20 billion, with adjusted operating income expected between $265 million and $290 million [6] Strategic Focus - The company emphasizes cost management while prioritizing investments in product innovation, brand strength, and customer experience to support growth [7]