Victoria's Secret & Co. recently released its 10-K report, providing a comprehensive overview of its financial performance for the year ended February 1, 2025. The company operates as a specialty retailer of women's intimate and other apparel and beauty products worldwide, offering a range of products under the Victoria's Secret, PINK, and Adore Me brands through various retail channels, including physical stores and digital platforms.
In the "Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations" section of the 10-K report, the company provided non-GAAP financial measures that present operating income, net income attributable to Victoria’s Secret & Co., and net income per diluted share attributable to Victoria’s Secret & Co. in 2025 and 2024 on an adjusted basis. These measures remove certain non-recurring, infrequent, or unusual items that the company believes are not indicative of the results of its ongoing operations due to their size and nature.
The report also included a detailed breakdown of the company-operated store data, comparing 2025 U.S. company-operated store data to 2024. It showed that sales per average selling square foot and sales per average store increased by 6% and 7%, respectively. Additionally, the report provided a breakdown of the number of stores operated by the company in different regions, including the U.S., Canada, China, and partner-operated stores.
Furthermore, the report discussed the company's financial results for 2025 compared to 2024. It revealed that the operating income decreased by $39 million to $271 million, and the operating income rate decreased to 4.1% from 5.0%. Net sales in 2025 increased by $323 million, or 5%, to $6.553 billion compared to $6.230 billion in 2024. The increase in net sales was primarily driven by growth in the international channel, with net sales increasing by 27% to $967 million in 2025.
The 10-K report provided a detailed breakdown of the factors contributing to the changes in net sales, including performance in the stores channel, direct channel, and international channel. It also discussed the impact of certain events, such as a security incident involving the company's information technology systems, on the company's financial results.
Following these announcements, the company's shares moved -1.22%, and are now trading at a price of $59.86. Check out the company's full 10-K submission here.
