US-based fashion and beauty retailer Victoria’s Secret has seen its sales and operating income in the first quarter (Q1) of 2025 surpassing expectations and reiterated its full-year sales forecast.
The company posted net sales of $1.35bn, which aligns with the upper end of the company’s guidance range and remained flat year-on-year (YoY). Despite this steady performance, the company experienced a 1% decline in total comparable sales during the same period.
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The retailer reported an operating income of $20m for Q1 2025, a decrease from the $26m reported in Q1 of the previous year. Victoria’s Secret also posted a net loss of $2m – an improvement compared to its net loss of $4m in Q1 2024.
Despite the cyber incident that took place in May, Victoria’s Secret did not experience significant operational disruptions in Q1.
However, the company has faced, and may continue to face, costs and financial consequences associated with the incident. These could adversely affect its financial outcomes, potentially impacting results for Q2 of fiscal 2025.
The release of the company’s first-quarter earnings was postponed due to a security incident that disrupted its information technology systems.
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By GlobalDataVictoria’s Secret chief financial officer Scott Sekella stated: “Though we recognise the macro environment is uncertain, we will continue to be disciplined in controlling costs and will remain agile, reading and reacting to what the customer is telling us to ensure we are building upon our solid foundation and realising the full potential of our globally recognised brands.”
In Q2 2025, Victoria’s Secret forecasts net sales between $1.38bn and $1.41bn – a slight decrease from the $1.417bn recorded in the Q2 2024.
The company anticipates adjusted operating income for Q2 to be between $15m and $35m, with adjusted net income per diluted share estimated to fall between $0 and $0.15.
Victoria’s Secret is maintaining its forecasted net sales range of $6.2bn to $6.3bn for the full year of 2025. However, the company has adjusted its expected operating income, now anticipating it to be between $270m and $320m, down from the previously projected range of $300m to $350m.
This revision takes into account an updated estimated net tariff impact of approximately $50m for the fiscal year.
Victoria’s Secret CEO Hillary Super stated: “I am pleased with the strength the business demonstrated during the March and April timeframe, which included continued momentum in our powerhouse beauty business, ongoing strength in PINK apparel, and newness in sport and swim as we reclaim our position as a full lifestyle brand.”
