Intimatewear and beauty retailer Victoria’s Secret (NYSE: VSCO) reported Q1 CY2026 results exceeding the market’s revenue expectations, with sales up 15.3% year on year to $1.56 billion. Guidance for next quarter’s revenue was optimistic at $1.60 billion at the midpoint, 2.9% above analysts’ estimates. Its non-GAAP profit of $0.60 per share was 90.2% above analysts’ consensus estimates.

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Hillary Super, VS&Co Chief Executive Officer, said, “We delivered a very strong start to 2026, exceeding top- and bottom-line guidance and continuing the momentum we built in the back half of last year. We drove double-digit sales growth across Victoria’s Secret, PINK, and Beauty, as well as our fourth consecutive quarter of positive comps. Our customer responded strongly to our product innovation, emotionally resonant storytelling, and distinct brand projection, driving double-digit growth in new customer acquisition, increased regular-price selling, and broad-based strength across categories, channels, and geographies. These results reflect the progress we are making against our Path to Potential strategy as we continue to strengthen customer connection, build brand heat, and drive sustainable long-term growth.”

Company Overview

Spun off from L Brands in 2020, Victoria’s Secret (NYSE: VSCO) is an intimate clothing and beauty retailer that sells its own brands of lingerie, undergarments, and personal fragrances.

Revenue Growth

A company’s long-term sales performance can indicate its overall quality. Any business can have short-term success, but a top-tier one grows for years.

With $6.76 billion in revenue over the past 12 months, Victoria's Secret is a mid-sized retailer, which sometimes brings disadvantages compared to larger competitors benefiting from better economies of scale.

As you can see below, Victoria's Secret’s 2.6% annualized revenue growth over the last three years was sluggish, but to its credit, it opened new stores and increased sales at existing, established locations.

This quarter, Victoria's Secret reported year-on-year revenue growth of 15.3%, and its $1.56 billion of revenue exceeded Wall Street’s estimates by 2.6%. Company management is currently guiding for a 9.8% year-on-year increase in sales next quarter.

Looking further ahead, sell-side analysts expect revenue to grow 4% over the next 12 months, similar to its three-year rate. This projection is above the sector average and indicates its newer products will spur better top-line performance.

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Store Performance

Number of Stores

A retailer’s store count influences how much it can sell and how quickly revenue can grow.

Victoria's Secret sported 1,423 locations in the latest quarter. Over the last two years, it has generally opened new stores, averaging 1.5% annual growth. This was faster than the broader consumer retail sector.

When a retailer opens new stores, it usually means it’s investing for growth because demand is greater than supply, especially in areas where consumers may not have a store within reasonable driving distance.

Same-Store Sales

A company’s store base only paints one part of the picture. When demand is high, it makes sense to open more. But when demand is low, it’s prudent to close some locations and use the money in other ways. Same-store sales is an industry measure of whether revenue is growing at those existing stores and is driven by customer visits (often called traffic) and the average spending per customer (ticket).

Victoria's Secret has been one of the most successful retailers over the last two years thanks to skyrocketing demand within its existing locations. On average, the company has posted exceptional year-on-year same-store sales growth of 4.6%. This performance suggests its measured rollout of new stores is beneficial for shareholders. We like this backdrop because it gives Victoria's Secret multiple ways to win: revenue growth can come from new stores, e-commerce, or increased foot traffic and higher sales per customer at existing locations.

In the latest quarter, Victoria's Secret’s same-store sales rose 13% year on year. This growth was an acceleration from its historical levels, which is always an encouraging sign.

Key Takeaways from Victoria's Secret’s Q1 Results

It was good to see Victoria's Secret beat analysts’ EPS expectations this quarter. We were also excited its gross margin outperformed Wall Street’s estimates by a wide margin. Lastly, full-year revenue guidance was raised. Zooming out, we think this was a good print with some key areas of upside. The stock traded up 1.6% to $55.18 immediately following the results.

Victoria's Secret put up rock-solid earnings, but one quarter doesn’t necessarily make the stock a buy. Let’s see if this is a good investment. We think that the latest quarter is only one piece of the longer-term business quality puzzle. Quality, when combined with valuation, can help determine if the stock is a buy. We cover that in our actionable full research report which you can read here (it’s free).