Victoria’s Secret & Co. VSXY is rebuilding momentum through a cleaner operating model and stronger brand execution. The company’s latest results show growth across Victoria’s Secret, PINK and Beauty, with total comparable sales up 13% in the first quarter of fiscal 2026.
The recovery is not limited to traffic or promotions. It reflects better product acceptance, higher regular-price selling and stronger engagement with both legacy and younger customers.
VSXY Rebuild Starts With Core Bras
Bras remain the center of the turnaround. The category grew in the low double digits in the first quarter, supported by better fit, comfort, styling and a sharper focus on the company’s top bra frames.
That strength is helping adjacent categories. Panties and sleepwear rose in the mid-teens, showing how leadership in bras can create a broader halo across the Victoria’s Secret brand.
Victoria's Secret & Co. Price, Consensus and EPS Surprise
Victoria's Secret & Co. price-consensus-eps-surprise-chart | Victoria's Secret & Co. Quote
Victoria’s Secret Finds Better Full-Price Demand
VSXY is also improving the quality of its sales. Management has been reducing promotions and markdowns while using more brand-led messaging to drive demand.
The impact showed up in mid-single-digit average unit retail growth. Adjusted gross margin expanded 240 basis points to 37.6%, while adjusted operating income rose 153% to $80 million, signaling a more profitable rebound.
PINK Gives VSXY a Younger Growth Engine
PINK is gaining traction as a more culturally relevant, digitally native brand for younger consumers. The brand delivered low-double-digit growth in the first quarter, helped by core apparel, intimates and better regular-price selling.
Customer engagement is improving as well. App downloads rose more than 50%, and the new PINK Soho store quickly became the company’s top PINK location, reinforcing the brand’s role in reaching 18- to 24-year-olds.
American Eagle Outfitters, Inc. AEO, through Aerie, remains a relevant comparison in intimates and youth-focused apparel. Its positioning highlights why PINK’s Gen Z reset matters in a competitive category.
VSXY Expands Through Global and Digital Reach
International growth gives VSXY another avenue for scale. Sales in the international business rose 44.9% year over year in the first quarter, or 36% after adjusting for a European digital reporting shift.
The company’s franchise, wholesale and joint venture model helps support expansion without requiring the same level of owned-store capital. China remains important, with digital activity and social selling helping build engagement.
Store modernization adds another lever. By the end of fiscal 2026, management expects about 45% of the global fleet to operate under the store of the future format.
Abercrombie & Fitch Co. ANF is another apparel retailer using stores and digital channels to support global brand engagement. Its omnichannel model makes it a useful peer when investors compare specialty retail turnarounds.
How VSXY Signals Fit the Turnaround
The bottom line: VSXY’s momentum looks broader than a one-quarter bounce. Bras are leading, PINK is attracting younger shoppers, Beauty is contributing and international growth is adding scale.
The stock currently carries a Zacks Rank #1 (Strong Buy), along with a VGM Score of A, Value Score of B and Growth Score of B. The Zacks Rank points to favorable estimate trends over the near term, while the Style Scores suggest the stock also has supportive value and growth characteristics. You can see the complete list of today’s Zacks #1 Rank stocks here.
That combination does not eliminate execution risk, especially around tariffs, discretionary demand and operating costs. Still, the Rank and Style Score profile gives investors another reason to watch whether VSXY can turn recent operating gains into a more durable recovery.
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