Victoria’s Secret Q4 Sales Up 8% to $2.27B, EPS Tops Guidance
Q4 net sales rose 8% year-over-year to $2.27 billion (9% ex-breakage) with comparable sales up 8%, fueled by double-digit Valentine’s collections growth and 43% international sales growth to $276 million. Fiscal 2025 adjusted EPS rose 22% to $3.00, Q4 EPS of $2.77 topped guidance, and cash reached $518 million with $312 million cash flow.
1. Q4 Sales and EPS
Victoria’s Secret & Co. delivered Q4 net sales of $2.27 billion, up 8% year-over-year (9% excluding gift card breakage), with comparable sales rising 8% for a second consecutive quarter. Adjusted EPS was $2.77, topping guidance, while full-year fiscal 2025 adjusted EPS climbed 22% to $3.00 per share.
2. Segment Performance Highlights
Bras returned to growth with mid-single-digit sales and higher average unit retails, sparking a halo effect into panties and sleepwear, which significantly outperformed expectations. PINK achieved its strongest year in a decade with high single-digit growth and viral demand tied to K-pop collaborations, while beauty grew low single digits led by Bombshell fragrance.
3. International and Digital Growth
International sales surged 43% to $276 million in Q4, led by robust digital demand in China and a coordinated global product and storytelling approach. Q4 app downloads rose 25%, with digital now accounting for one-third of online sales and social campaigns generating billions of impressions.
4. Margins, Cash Flow and Capital Actions
Fiscal 2025 adjusted operating income increased 16% to $403 million and adjusted gross margin expanded 50 basis points excluding breakage despite $85 million in tariff headwinds. The company ended Q4 with $518 million in cash, repaid its $750 million credit facility, and generated $312 million in free cash flow.