stockrowWhat it does
Victoria’s Secret & Co. is a specialty retailer selling women’s intimates, other apparel and beauty products. Its brands include Victoria’s Secret, PINK and Adore Me. The company was founded on 1977-06-12, is headquartered in Reynoldsburg and is led by Chief Executive Officer Hillary Super.
Its products include bras, panties, lingerie, sleepwear, swimwear, sport and lounge apparel, fragrances and body care. Victoria’s Secret sells across those categories, while PINK is an apparel and intimates brand for young women. Adore Me sells lingerie and apparel directly to consumers across budgets and stages of life. The company also operates DailyLook, a digital subscription styling service for women’s apparel and accessories.
Customers can shop in company-operated stores, on company websites and apps, and through third-party digital marketplaces. Outside North America, the company also reaches shoppers through stores and websites operated by partners, as well as joint ventures and travel retail locations.
Victoria’s Secret designs and sources merchandise for its own business and international partners. It manages the business as a single segment serving customers through stores and digital channels. Its stores are located in shopping malls, lifestyle centers and off-mall locations, while its digital channels serve customers worldwide.
How it makes money
Victoria’s Secret earns revenue primarily by selling apparel and beauty merchandise to shoppers through its stores and digital channels. It also earns royalties from international franchise and license partners and sells merchandise to wholesale and sourcing partners. The company reports these activities in one operating segment rather than separate brand segments.
Net sales were $6.553 billion for the fiscal year ended January 31, 2026, and $1.611 billion in Q2 fiscal 2026.
In franchise and license arrangements, partners receive rights to sell products in specified regions and operate under the company’s standards. Royalties are generally recognized when partners sell merchandise to retail customers and are typically based on a percentage of sales. Royalty rates are generally low-double digits to low-teens. Partners generally provide the capital for their stores or websites and fund their own operations.
Wholesale prices generally reflect a discount to suggested retail prices and vary by product category. Wholesale revenue is generally recognized when title to merchandise passes to the partner. Franchise and license agreements typically have an initial term of approximately ten years, while wholesale agreements typically begin with a five-year term; both can have renewal options.
The company also generates subscription revenue through DailyLook. Its retail sales are seasonal: the fourth quarter, including the holidays, typically accounts for approximately one-third of net sales. Victoria’s Secret uses promotions and markdowns, but has been working to reduce its reliance on promotions and increase regular-price selling.
Customers and how it sells
Victoria’s Secret serves women through its namesake brand and Adore Me, while PINK focuses on young women. The company reported that its customer file grew mid single digits year over year in Q2 fiscal 2026. It also reported high-single-digit growth in new customer acquisition, with particular strength among 18 to 24 year olds.
For FY2026, United States revenue was $5.4 billion, or 82.3% of revenue. Non-US revenue was $1.2 billion, or 17.7%. These geographic figures differ from the company’s channel reporting: its international channel includes partner-related royalty and wholesale sales, China stores and digital sites, and certain European digital sales.
As of January 31, 2026, the company counted 858 stores across its company-operated, China joint venture and Adore Me store categories, including six partner-operated China joint venture stores. It also counted 562 international stores operated by partners outside that China joint venture category. Partner stores and websites sell Victoria’s Secret and PINK products in approximately 70 countries.
The company said its international business grew in Q2 fiscal 2026, led by China and its European digital business. Shoppers also reach its brands through company sites and apps, marketplaces and travel retail.
| Region | Revenue, FY2025 | Share | Change on the year |
|---|---|---|---|
| UNITED STATES | $5.3 billion | — | — |
| Non-US | $978.0 million | — | — |
Suppliers and costs
Victoria’s Secret purchased merchandise from approximately 335 vendors worldwide during the fiscal year ended January 31, 2026. Its largest vendor accounted for approximately 13% of purchases by spend. The company believes numerous alternative suppliers are available and that losing any one vendor would not materially harm its business.
Intimates and apparel are produced through an internationally outsourced platform, while beauty manufacturing is largely centered in Ohio. The company has sourcing and production operations in the United States and Southeast Asia. A substantial portion of merchandise moves through distribution centers in the Columbus, Ohio area; third-party centers in North America and Europe also distribute products.
Costs include merchandise, freight, buying and occupancy expenses, store and distribution labor, marketing and technology. Inventory builds ahead of the holiday season, and the company marks down products as needed. It estimated that tariffs, net of mitigation efforts, reduced operating income by approximately $85 million in the fiscal year ended January 31, 2026. In Q2 fiscal 2026, it reported an approximately $10 million incremental gross tariff headwind and an approximately $20 million net benefit after mitigation.
- Revenue$6.6B
- Cost of revenue−$4.2B
- Selling, general and administrative−$2.1B
- Operating income$271.0M
Competitive position
Victoria’s Secret competes in women’s intimates, apparel and beauty against specialty retailers, department stores, mass merchandisers, online retailers, discount retailers, private-label brands and emerging brands. Its description of that competitive market does not identify individual competitors by name. Competition involves design, price, service, fulfillment, assortment, fit, quality and marketing.
The company says Victoria’s Secret and PINK have a leading combined share in intimates, without specifying a percentage. In Q2 fiscal 2026, it said it continued to gain share in the category. Its brands reach customers through stores, digital channels and international partners, and the company offers in-store bra fitting as part of its service.
Our reading: Brand recognition and the company’s stated intimates share are meaningful competitive strengths, although the evidence does not establish how durable that share is. The store and digital network also gives customers several ways to shop and gives the company reach across markets, but those channels are shared with many types of competitors.
Our reading: Bra fitting and product-design capabilities can help distinguish the customer experience, but their strength depends on continued customer acceptance of the assortment. The sourcing network provides flexibility, though outsourced production and international distribution still expose the company to disruption.
Growth opportunities
Victoria’s Secret’s Path to Potential plan has four priorities: strengthen its bra business, recommit to PINK, grow beauty, and evolve its brand presentation and approach to reaching customers. The company plans more bra innovation and fashion updates, supported by marketing and in-store fitting. For PINK, it is developing an apparel-led lifestyle brand while adding new styles across apparel and intimates.
In beauty, the company is investing in fragrance and other offerings, including a differentiated offering for PINK. It also uses beauty-only stores and travel retail to reach international customers. The company plans to expand international locations through franchise, license and wholesale arrangements, alongside company-owned and partner digital channels.
The company reported that Q2 fiscal 2026 net sales increased 10% year over year and comparable sales increased 9%. Its bra business grew in the mid teens, PINK grew high single digits and beauty grew mid single digits. International reported net sales grew 20%; adjusting for a shift in how European digital sales were reported, international sales grew 10%.
Victoria’s Secret expects fiscal 2026 net sales of $7.1 billion to $7.18 billion. It also expects North American store counts at the end of 2026 to be flat to slightly up compared with the prior year. The company is refreshing stores with a smaller, more flexible design and a dual-brand layout, while investing in digital marketing and customer engagement.
- $6.8BFY2022
- $6.3BFY2023
- $6.2BFY2024
- $6.2BFY2025
- $6.6BFY2026
Structural risks
- Consumer demand and fashion: Economic conditions, inflation and changes in consumer confidence can affect spending. The company must attract customers, remain current with fashion trends and launch merchandise that consumers accept.
- Global sourcing and trade: Tariffs, changes in trade policy, political instability, shipping disruptions and labor disputes can affect the production and movement of merchandise. Production and distribution facilities are concentrated in central Ohio and Southeast Asia.
- Partners and international operations: International expansion depends in part on the operations and performance of franchisees, licensees, wholesalers and joint venture partners. Currency movements and local legal requirements also affect global operations.
- Technology and security: The company depends on its own and third parties’ information systems and must protect customer, associate and company information. A security incident detected in May 2025 was resolved; the company estimated it reduced 2025 net sales by approximately $20 million.
- Debt and seasonal funding: Debt obligations could restrict business strategies and reduce cash available for working capital and investment. Inventory needs typically increase in summer and fall ahead of the holiday selling season.
Bottom line
Our reading
Our reading: Victoria’s Secret is a branded retailer whose business rests on attracting repeat shoppers to intimates, apparel and beauty across stores and digital channels, while partners extend its international reach. Its brands and distribution provide a competitive base, but the business remains exposed to fashion demand, promotional decisions and supply-chain costs. (item1, item7)
Recent sales growth and increased regular-price selling are encouraging operating evidence, but maintaining them will require continued product acceptance and execution through the holiday season. (call_prepared, item1)