Victoria's Secret & Co. has recently released its 10-Q report, providing a detailed insight into its financial performance and strategic priorities. The company operates globally recognized brands specializing in women's intimate apparel, personal care, and beauty products including Victoria's Secret, PINK, and Adore Me. In the second quarter of 2025, the company reported a 3% increase in net sales to $1.459 billion, with a 3% increase in North American store sales and a 22% increase in international sales. However, operating income decreased by $21 million to $41 million compared to the same period in 2024, primarily due to an increase in tariff costs, transportation costs, and incentive compensation expenses.
The company's strategic priorities include Supercharge Bras, Recommit to PINK, Fuel Growth in Lifestyle Categories, and Evolve Brand Projection & Go-To-Market Strategy. It maintains a disciplined approach, focusing on operational excellence, strategic capital allocation, and continued investment in capabilities differentiating it in the marketplace.
Victoria's Secret & Co. also highlighted near-term headwinds and ongoing uncertainty in the macro environment, particularly related to U.S. tariffs on imports from other countries. The company reported a security incident involving its information technology systems, which negatively impacted net sales by approximately $20 million and operating income by approximately $14 million. The company maintains cybersecurity insurance, and the claim process for potential insurance recoveries related to this incident is ongoing.
Additionally, the report presented non-GAAP financial information, including adjusted operating income, net income attributable to Victoria's Secret & Co., and net income per diluted share attributable to Victoria's Secret & Co. The company also provided store data, indicating a 6% increase in sales per average selling square foot and a 4% increase in sales per average store for the second quarter of 2025 compared to the same period in 2024.
The market has reacted to these announcements by moving the company's shares 2.26% to a price of $26.25. Check out the company's full 10-Q submission here.
