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Victoria's Secret & Co., known for years for its “seven panties for $35” offers and other deals, reported third-quarter results that handily topped expectations given increases in customer acquisition and full-price selling.
The 9% revenue gain in the quarter marked an acceleration from a 3% gain in the second quarter.
On an analyst call, Hillary Super -- who became Victoria’s Secret CEO in September 2024 -- said growth particularly benefited from buzz emanating from the Victoria's Secret Fashion Show, which returned in 2024 after a six-year hiatus following pushback from the #MeToo movement.
Held on Oct. 15, this year’s show featured musical performances by Missy Elliott, Madison Beer, K-pop girl group TWICE, and Karol G.
Super, a former Savage x Fenty executive, said the show “once again became a cultural phenomenon” and enabled the brand to showcase its more inclusive “new era of sexy” positioning. Super said, “In this era, beauty is no longer a singular standard. It's on her own terms, a conscious liberating choice.”
Streaming views of the event reached approximately 61 million, up over 60% versus last year. Victoria’s Secret gained nearly 9 million new social followers as engagement “soared” post-show across search volume, click-through rates, and recorded positive sentiment.
The heightened interest around the VS Fashion Show helped Victoria’s Secret’s bra sales return to growth in the third quarter, with market share gains accelerating. Super said, “By connecting emotionally with the customer, we've been able to increase regular price selling, pull back on promotions and execute select strategic price increases all while growing the bra base business.”
Victoria's Secret Pivots its Pink Brand Back Into Position, Looks to Gift With Purchase For Growth
The Victoria’s Secret brand’s growth was also supported by a strong response to the launch of the FlexFactor bra, investing in more “bra-fitting experts” in top stores, and a focus on digital and social marketing.
The Pink brand, which is being repositioned back to its roots as a lifestyle brand for 18- to 24-year-olds driven by a social media focus, delivered double-digit sales growth in the quarter, with intimates returning to growth. Super said Pink benefited from a "steady drumbeat of newness," including launches around back-to-school, Game Day, and Halloween events -- as well as a record-breaking LoveShackFancy collaboration that was included in the VS Fashion Show. Super said, “With the right innovation and brand experience, Pink intimates can unlock meaningful growth.”
Gross margins in the quarter improved 170 basis points as continued strength in regular price selling and a pullback in traditional promotions offset the impact from tariff pressures.
Asked in the Q&A session of the call about progress on reducing promotions, Scott Sekella, CFO and COO, added that the chain has also found success using gift-with-purchase deals to offset broader promotions, while also helping lift higher average order value.
Sekella added, “As we've talked about, promotions will be a multiyear journey. So we'll continue to find these opportunities to drive more regular price selling, pull back on full box promotions and continue to be more about emotion versus promotion.”