Financial Data and Key Metrics Changes - The company reported net sales of $1.47 billion, an increase of 9% year-over-year, with adjusted gross margin expansion of 170 basis points and earnings growth of 45% [8][27][32] - Adjusted operating income for the third quarter was break-even, better than the guidance of an adjusted operating loss of $35 million to $55 million [33][34] - Adjusted net loss per share was $0.27, significantly better than the guidance of $0.55 to $0.75 [34] Business Line Data and Key Metrics Changes - The intimates business returned to growth, up mid-single digits, gaining over 1% share in the U.S. intimates market [6][15] - PINK achieved double-digit sales growth, with a notable return to growth in intimates for the first time in years [17][19] - The beauty business grew low single digits, building on last year's mid-teens increase [20][30] Market Data and Key Metrics Changes - International retail sales grew over 30% during the quarter, driven by exceptional performance in China, particularly in the digital channel [8][31] - The company gained over 1% market share in the U.S. intimates market despite the overall market decline [24][30] Company Strategy and Development Direction - The company is focused on a "Path to Potential" strategy built around four pillars: supercharging bra authority, recommitting to PINK, fueling growth in beauty, and evolving brand projection [5][13][19] - The strategy aims to enhance customer acquisition and retention, with a strong emphasis on innovation and emotional connection with customers [12][14][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to execute the strategy and deliver strong results, particularly heading into the holiday season [25][45] - There is caution regarding potential consumer pullback post-holiday, but the company remains optimistic about maintaining momentum [45][76] Other Important Information - The company raised its full-year outlook for net sales to a range of $6.45 billion to $6.48 billion, compared to previous guidance [36][37] - Adjusted operating income guidance for fiscal year 2025 was raised to $350 million to $375 million [37] Q&A Session Summary Question: How is the company maintaining momentum post-fashion show? - Management noted strong traffic and engagement, particularly in stores, and emphasized the importance of the Path to Potential initiatives [48][49] Question: Can you elaborate on strategies to reduce promotions? - The company is pulling back on promotions while utilizing gifts with purchase (GWPs) to drive customer engagement and higher average order values [51][52] Question: What is the profile of new customers being acquired? - New customer acquisition is focused on the 18-24 age group, with a noted increase in higher average order values [55][56] Question: Is a low double-digit EBIT margin achievable? - Management believes a low double-digit operating margin is achievable over the next couple of years, supported by growth and disciplined expense management [58][59]

Financial Data and Key Metrics Changes - The company reported net sales of $1.47 billion, an increase of 9% year-over-year, with adjusted gross margin expansion of 170 basis points and earnings growth of 45% [6][27][32] - Adjusted operating income for the third quarter was break-even, better than the guidance of an adjusted operating loss of $35 million to $55 million [33][34] - Adjusted net loss per share was $0.27, significantly better than the guidance of $0.55 to $0.75 [34] Business Line Data and Key Metrics Changes - The intimates business returned to growth, up mid-single digits, gaining over 1% share in the U.S. intimates market [5][14] - PINK achieved low double-digit sales growth, marking a significant recovery [17][30] - The beauty business grew low single digits, building on last year's mid-teens increase [20][30] Market Data and Key Metrics Changes - International retail sales grew over 30% during the quarter, driven by exceptional performance in China, particularly in the digital channel [6][31] - The company gained market share in the U.S. intimates market despite an overall market decline [25][62] Company Strategy and Development Direction - The company is focused on four strategic pillars: supercharging bra authority, recommitting to PINK, fueling growth in beauty, and evolving brand projection and go-to-market strategy [4][12][19] - The Path to Potential strategy aims to create a powerful multiplier effect, unlocking greater value across the ecosystem [4][26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to execute the strategy and deliver a strong holiday season, despite being cautious about potential consumer pullback post-holiday [25][45] - The company raised its full-year outlook for net sales to a range of $6.45 billion to $6.48 billion, reflecting strong momentum [35][36] Other Important Information - The Victoria's Secret fashion show significantly boosted brand engagement, resulting in nearly 9 million new social followers and 51 billion total media impressions [9][10] - The company is investing in talent to scale its beauty business and enhance its innovation pipeline [20][21] Q&A Session Summary Question: How is the company maintaining momentum post-fashion show? - Management noted strong traffic and engagement, particularly in stores, and emphasized the importance of the Path to Potential initiatives [46][47] Question: Can you elaborate on strategies to reduce promotions? - The company is pulling back on promotions while utilizing gifts with purchase (GWPs) to maintain customer value, contributing positively to gross margin [49] Question: What is the profile of new customers being acquired? - New customer acquisition is focused on the 18-24 age group, with a noted increase in higher average order values [51][52] Question: What is the outlook for operating margins? - Management believes a low double-digit operating margin is achievable over the next couple of years, supported by growth and disciplined expense management [53] Question: What is the cadence of monthly comps in Q3? - Strong performance was noted throughout Q3, with significant amplification in October due to the fashion show, sustaining momentum into November [60][61]