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-$55 million [33][34] - Adjusted net loss per share was $0.27, significantly better than the guidance of $0.55-$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 increase in customer acquisition and engagement [17][19] - The Beauty segment grew low single digits, building on last year's mid-teens increase [20][30] Market Data and Key Metrics Changes - The international business saw sales grow over 30%, driven by exceptional performance in China, particularly in the digital channel [8][30] - The U.S. intimates market declined, yet the company grew its market share by over 1% [24][30] Company Strategy and Development Direction - The company is advancing its "Path to Potential" strategy, focusing on four pillars: Supercharging Bra Authority, Recommitting to PINK, Fueling Growth in Beauty, and Evolving Brand Projection [5][25] - The strategy aims to enhance brand distinctiveness and unlock greater value across the ecosystem to drive sustained shareholder returns [5][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to execute the strategy and deliver a strong finish to fiscal 2025, despite being cautious about potential consumer pullback post-holiday [45][37] - The company raised its full-year outlook for net sales to $6.45 billion-$6.48 billion, reflecting strong momentum into the fourth quarter [36][37] Other Important Information - The Victoria's Secret fashion show significantly impacted brand engagement, resulting in increased customer acquisition and social media impressions [10][11] - The company is focusing on reducing promotions while enhancing regular price selling, which has contributed to gross margin expansion [51][70] Q&A Session Summary Question: How is the company maintaining momentum post-fashion show? - Management noted strong traffic and engagement, particularly in stores and internationally, driven by bras and glamour products [48] Question: Can you elaborate on strategies to pull back on promotions? - The company is successfully using gifts with purchase (GWPs) to provide value while reducing promotions, contributing positively to gross margin [51] Question: What is the profile of new customers being acquired? - New customer acquisition is focused on the 18-24 age group, with higher average order values, indicating quality engagement rather than price-driven purchases [58] 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 [60][61] Question: What is in the pipeline for bra launches in 2026? - The company has several bra launches planned for 2026, building on successful marketing strategies and customer engagement [66]

Core Insights - Victoria's Secret has launched the new Body by Victoria FlexFactor Lightly Lined Plunge Demi Bra, which features an innovative flexible titanium underwire for enhanced comfort and movement [1][4] - The Body by Victoria collection is the brand's top-selling line, with a bra sold every 5 seconds and thousands of five-star reviews, indicating strong customer satisfaction [1][3] - The new bra is designed with ultra-light construction and memory foam that adapts to individual shapes, promoting a barely-there feel while providing support [3] Product Details - The Body by Victoria collection includes a variety of products such as bras, panties, casual sleepwear, and apparel, with prices starting at $16.95 and sizes ranging from XS-XXL and bra sizes from bands 30-44 and cups A-G [3] - The new collection will be available in retail locations and online starting July 23, 2025 [5] Marketing and Campaign - The campaign for the new collection was shot in New York City, emphasizing movement and freedom, and was led by Executive Creative Director Adam Selman in collaboration with creative agency Chandelier [2][4] - The innovative design of the new bra is highlighted as a significant advancement in the collection, aiming to enhance the overall customer experience [4] Company Overview - Victoria's Secret is a leading global retailer in intimate apparel, known for its fashion-inspired collections, including bras, panties, lingerie, and casual sleepwear, as well as fragrances and body care products [6][7] - The company operates over 1,380 retail stores in nearly 70 countries, employing more than 30,000 associates [6]