price and the retailer relied less heavily on promotions. Gross margin expanded by 320 basis points to 38.8 per cent, while net income topped US$85 million. Neil Saunders, managing director at GlobalData, believes the result demonstrates the durability of the company’s recovery. “This is another strong quarter from Victoria’s Secret, which underlines the durability of the recovery being engineered by the leadership team,” he said. “Admittedly, growth moderated a bit from last quarter’s stellar numbers, but the business was up against some tougher prior-year figures and didn’t have the benefit of Valentine’s Day in this period. As such, the performance remains both robust and market-beating.” Following the strong quarter, the company raised its full-year guidance. It now expects net sales of between US$7.1 billion and US$7.18 billion, compared with its previous forecast of US$7.03 billion to US$7.13 billion and last year’s sales of US$6.6 billion. Adjusted operating income is now expected to reach as much as US$590 million, compared with the previous forecast of between US$550 million and US$580 million. Last year, it reached US$403 million. Super argued that Victoria’s Secret was poised for further growth in the second half. “With more product innovation, partnerships and emotionally connected campaigns ahead – including the Angels Among Us docuseries, an even bigger and better Victoria’s Secret Fashion Show and holiday activations – we are incredibly excited about the back half of the year and the opportunity to continue building both of these iconic brands.” What retail experts made of Victoria’s Secret’s Q2 results Saunders added that growth was broad-based across channels and regions, indicating genuine traction behind the numbers. “From our data, this is underpinned by the fact that Victoria’s Secret isn’t just expanding spend among existing shoppers, but it’s also now attracting new ones – which reverses a long period of continuous erosion of the customer file,” he said. The company had expanded its customer base by carefully refining its products, campaigns and online and in-store experiences to attract Gen Z and millennial shoppers, Saunders said. “A practical example of how this plays out can be seen in the updating of the bra range, which is a staple line for the business. Rather than handwringing over how bras should be positioned and whether their aim is to be sexy, sensual or something else, management focused on fit, comfort, and styling – all things that actually matter to customers. The new bra frames across the assortment have been well received and continue to help lift sales in the category. This increased appeal has also had a positive knock-on impact on adjacent categories like sleep and beauty.” Saunders also pointed to a clearer distinction between the Victoria’s Secret and Pink brands. This has allowed the company to target two different customer groups while reducing the cannibalisation that previously occurred between them. He predicted further growth for Pink as it attracts more young consumers and develops a broader lifestyle offering. “Looking ahead, the guidance remains positive. The forecast growth rates moderate a bit from the first half highs, but Victoria’s Secret also starts to lap much tougher prior year numbers so the two-year stacks remain healthy and reflect a business with continued momentum.” Barney Stacher, CEO of consultancy Retail OCD, agreed that the turnaround had substance. “Victoria’s Secret is proving that its turnaround is more than a cosmetic makeover,” he said. “The company has returned its attention to the fundamentals that originally made the brand powerful – better product, particularly in bras; a clearer and more confident brand identity; renewed relevance at Pink; and marketing that is once again creating cultural interest.” To maintain that momentum, Stacher said the company needed to continue innovating and improving fit while turning new and re-engaged shoppers into repeat customers. “To maintain momentum, Victoria’s Secret must keep product innovation and fit at the centre of the strategy while converting newly acquired and re-engaged customers into repeat customers. Increased marketing around the fashion show, partnerships and holiday can build brand heat, but management will need to demonstrate that those investments translate into customer growth, full-price sales and stronger lifetime value – not simply attention.” For Stacher, the next step is to turn that renewed relevance into predictability. “Victoria’s Secret has succeeded in making the brand desirable again; now it must show that desirability can produce durable, repeatable and profitable growth.” Why investors weren’t excited about Victoria’s Secret’s Q2 results Despite Victoria’s Secret’s continued winning streak, investors were less than impressed by the company’s results. Its shares fell 16.4 per cent to US$71 immediately after the fiscal report was released. Christine Russo, principal of a retail creative and consulting agency, attributed the decline to the company falling short of Wall Street’s sales expectations. Victoria’s Secret reported net sales of US$1.61 billion, slightly below Wall Street’s expectation of US$1.62 billion. Although this represented a modest US$10 million miss, sales were still up 10 per cent year on year. “As things go on Wall Street, bad news often outweighs good news,” said Russo. Russo nevertheless remained optimistic about the company’s momentum, pointing to its focus on products, events and marketing. Russo said Hillary Super attributed the strong quarter to product, brand identity, storytelling and execution working together. “With continued emphasis on engaging events like the Fashion Show and focus on product, the momentum will continue.” How Victoria’s Secret is gearing up for its 2026 fashion show This year’s Victoria’s Secret Fashion Show will premiere on October 18 in Los Angeles, moving from its previous setting in New York. Ahead of the event, Victoria’s Secret will premiere a new YouTube docuseries, Angels Among Us, in which the next Angel will be chosen to walk the runway on October 18. The first episode of the series, created with Boardwalk Pictures and directed by Nadia Hallgren, will debut on September 27, with subsequent episodes airing every Sunday and Thursday before the live finale. Super also announced that the annual runway show would be presented in partnership with YouTube rather than Amazon this year. She described YouTube as a more “democratic” way to reach younger consumers through a platform on which they already prefer to watch content. She added that the “connectivity of paid marketing and YouTube” would be a powerful marketing tool for the company. Frankie Margotta, strategy director at consulting firm Triptk, said the partnership could extend the fashion show’s impact beyond the event itself. “Streaming on YouTube strengthens that further by creating more opportunities for participation, creator collaboration, and content that can live beyond the event itself.” Margotta said Victoria’s Secret was returning to the qualities that made it iconic without simply reviving its old playbook. The company and the wider market had promoted a much narrower ideal of aspiration in the 1990s and early 2000s, shaped by body type, complexion and facial features. Those standards carry far less influence today, with aspiration increasingly defined by confidence, sensuality and self-expression. “To Super’s credit, she’s harnessed the fashionable, luxe and unabashed sex appeal that made Victoria’s Secret a cultural icon, while expanding the narrow definition the brand once put around it.” Margotta said Los Angeles provided a fitting setting for that shift. Its associations with entertainment, beauty, celebrity and creators would allow Victoria’s Secret to retain the spectacle and sensuality of its fashion show while presenting the brand within a different cultural context. “LA brings new codes around entertainment, beauty, celebrity and creators, giving Victoria’s Secret room to experiment with how the show looks and who gets invited into its world.” As retailers and consumers await the show, Victoria’s Secret appears confident that its momentum will continue despite Wall Street’s reservations. Further reading: Inside Victoria’s Secret plan for international expansion