VSXY Slides Toward Worst Week Since March: CEO Says 'We Are Not Done' As Retail Bulls Hold Firm

Victoria’s Secret raised its full-year sales forecast after strong profit, although lower promotional inventory hurt June sales.

• Victoria’s Secret CEO Hillary Super said the turnaround is gaining traction, with customer growth across demographics and channels. 
• Full-price sales rose at a low-double-digit rate, while bras posted mid-teens growth, benefiting both Victoria’s Secret and PINK. 
• Lower sale inventory boosted early demand but later pressured June sales.

Victoria’s Secret & Co. (VSCO) is on track for its worst week since March after the lingerie retailer’s second-quarter (Q2) sales fell just shy of Wall Street expectations. Despite the market’s disappointment, CEO Hillary Super highlighted growing customer engagement, market-share gains and continued momentum across bras, PINK and beauty. 

Victoria’s Secret stock edged 0.2% higher in Thursday’s premarket and has slumped 16% so far this week. 

Victoria’s Secret Customer Gains And Full-Price Sales Grow 

During the Q2 earnings call, Victoria’s Secret CEO said the company’s turnaround strategy is beginning to produce results despite a difficult economic backdrop.

“Today, we are attracting more customers, winning market share and strengthening the value proposition for both brands. Product, brand identity, storytelling and execution are all working together. We have made meaningful progress, but we are not done.” 

She added that sales growth reached customers across age groups, income levels and shopping channels, while full-price purchases rose at a low-double-digit rate.

The company’s bra category posted mid-teens growth, helped by established product lines and newer offerings. The category also supported results at both Victoria’s Secret and PINK, making it an important part of the company’s broader growth plan.

Victoria’s Secret Lower Sale Inventory Weighs On June Sales 

Meanwhile, the beauty business extended its sales-growth streak to 12 consecutive quarters, giving the company another source of consistent momentum. Super said Victoria’s Secret is also changing how it approaches promotional events, remarking, “We have made a deliberate decision to reduce our reliance on promotion and increase regular price selling.” 

That strategy meant entering the Semi-Annual Sale with less promotional inventory.Customer demand and product sell-through during the early stages of the sale came in ahead of expectations. However, leaner inventory eventually weighed on June sales, said Super. 

Super said the company intends to develop Victoria’s Secret and PINK as separate, globally recognized growth brands while building its beauty operation into a larger supporting business.

The company reported a 10% year-on-year increase in Q2 sales to $1.61 billion, while net income surged to $183 million, or $2.18 per share, from $16.2 million a year earlier, easily beating estimates.

Despite the strong earnings growth, revenue missed Wall Street’s $1.62 billion forecast and sequential momentum weakened. The company raised its 2026 sales outlook to $7.10 billion-$7.18 billion from $7.03 billion-$7.13 billion, citing progress from its turnaround strategy.

VXSY Stock: Retail View

On Stocktwits, retail sentiment around the stock remained in ‘extremely bullish’ territory. 

A user said, “Whoever bought this drop to $64 made the fastest money in the market in the past month.”

VSXY stock has gained nearly 36% year-to-date.

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