Victoria’s Secret has ended its fiscal year on a strong note, with both sales and profit exceeding management’s expectations.

Sales for the quarter ended January 31 grew 8 per cent on both a reported basis and comparable basis to $2.27 billion, above the guidance range of $2.17 billion to $2.2 billion.

Sales from North America stores increased 5.2 per cent, while direct sales were up 2.8 per cent. International sales jumped 43 per cent.

Adjusted operating income increased 5.6 per cent to $316 million, exceeding previous outlook of $265 million to $290 million. Adjusted net income rose 10 per cent to $238 million.

Excluding the impact from last year’s change in accounting estimate relating to outstanding gift cards, net sales rose by an even higher 9 per cent and adjusted operating income soared 16 per cent.

For the full year, net sales were up 5 per cent to $6.553 billion, with comparable sales also up 5 per cent. Adjusted net income grew from $218 million to $250 million.

“We delivered an exceptional fourth quarter and a standout year, exceeding top- and bottom-line guidance with broad based outperformance across brands, channels and geographies,” said CEO Hillary Super.

“Our 2025 results reflect the progress we have made against our Path to Potential strategy as we build brand heat and powerful connections with our customers around the world.” 

The company has initiated a strategic review of DailyLook, which it described as a non-core asset. The online personal styling service was acquired through the Adore Me transaction in December 2022.

The firm said it is “evaluating opportunities to position DailyLook for long-term success”, adding that the move will allow it to focus on its core brands, Victoria’s Secret and Pink.

Management also plans to end the intimate subscription offering for its Adore Me business and convert it to a loyalty program.

For FY26, the company expects net sales to grow 4.5-6 per cent.