Victoria’s Secret tops holiday quarter earning estimates

Core Insights - Victoria's Secret & Co. reported fourth quarter results that exceeded Wall Street expectations, indicating continued momentum from its turnaround strategy [2][3] - The company provided a stronger-than-anticipated outlook for the upcoming fiscal year, reflecting confidence in its growth trajectory [2][6] Financial Performance - For the fourth quarter ended January 31, adjusted earnings were $2.77 per diluted share, surpassing analysts' expectations of $2.52 [2] - Revenue for the quarter was $2.27 billion, exceeding the consensus estimate of $2.23 billion, with net sales increasing by 8% year-over-year and comparable sales also rising by 8% [3] - For the full fiscal year 2025, net sales reached $6.55 billion, a 5% increase from $6.23 billion in fiscal 2024, with comparable sales also up by 5% [4] Future Outlook - The company anticipates first-quarter sales to be between $1.49 billion and $1.53 billion, above analysts' expectations of approximately $1.42 billion, with projected operating income between $32 million and $42 million [5] - For fiscal 2026, Victoria's Secret forecasts net sales of $6.85 billion to $6.95 billion, compared to $6.55 billion in fiscal 2025, exceeding market expectations of around $6.8 billion, with expected operating income between $430 million and $460 million [6] Market Reaction - Despite the strong financial report and positive guidance, shares of Victoria's Secret fell about 12% shortly after the market opened, likely due to profit-taking following a recent stock rally [6]