Victoria’s Secret & Co. (NYSE: VSCO) is a specialty retailer known for modern, fashion-inspired collections, including bras, panties, lingerie, apparel, swimwear, and beauty products. The company operates under notable brands, including Victoria’s Secret and PINK, and has made significant progress in revitalizing its product offerings amidst a challenging retail environment.

For the first quarter of 2025, the company reported net sales of $1.353 billion, flat compared to $1.359 billion in the same quarter of the previous year. Total comparable sales decreased by 1%. Adjusted operating income for the quarter was $32 million, exceeding the previously issued guidance of $10 million to $30 million, yet down from $40 million year-over-year. The adjusted net income was reported at $7 million or $0.09 per diluted share, slightly below the prior year’s adjusted figure of $9 million, or $0.12 per diluted share.

The first quarter reflected strong performance in March and April, with positive year-over-year growth following a decline in February. Growth was driven largely by increased traffic, with the company’s international operations seeing strong high single-digit growth, contributing nearly $200 million to total sales. In North America, however, retail sales were flat overall, with a decrease in comparable sales across both Victoria’s Secret and PINK brands, while beauty offerings experienced low single-digit growth.

The company’s first-quarter adjusted gross margin dollars were reported at $476 million, with an adjusted gross margin rate of 35.2%, a decline of 170 basis points compared to the prior year’s rate, largely attributed to elevated air freight costs and tariff-related adjustments. On the expense side, adjusted selling, general & administrative expenses were $444 million, resulting in an adjusted SG&A rate of 32.8%, better than anticipated.

Looking ahead, Victoria’s Secret maintains its guidance for annual net sales within a range of $6.2 billion to $6.3 billion, which reflects a slight increase over the previous year’s results. For the second quarter of 2025, the company forecasts net sales between $1.38 billion and $1.41 billion, assuming a net sales impact of approximately $20 million due to a recent security incident. Adjusted operating income for the second quarter is expected to fall between $15 million and $35 million, with adjusted net income per diluted share anticipated to range from $0.00 to $0.15.

In managing cost pressures linked to tariffs, the company anticipates a net impact of about $50 million for the fiscal year, which includes measures such as sourcing diversification and changes in freight strategies. The projected adjusted operating income for fiscal year 2025 has been revised to a range of $270 million to $320 million, down from previous estimates. Overall, while challenges remain within the retail landscape, Victoria’s Secret’s strategic priorities are aimed at navigating these external pressures while enhancing brand connection and market position.