Victoria's Secret & Co. Q4 FY2025 earnings call

• Hillary Super mentioned the business returned to growth mode in 2025 with full year comp sales up 5%, and fourth quarter and full year results exceeded top and bottom line guidance. The Path to Potential strategy with four pillars (supercharging bra authority, recommitting to PINK, fueling growth in beauty, evolving brand projection and go-to-market) was executed. Holiday and Valentine's Day execution showed improvement, with sleep outperforming, VS and PINK Valentine's collections having double-digit sales growth. International had strong net sales growth with coordinated global approach. • Scott Sekella discussed financials, noting fourth quarter net sales $2.270 billion, adjusted operating income $316 million, and outlook for fiscal 2026 with net sales range $6.850 billion - $6.950 billion, operating income range $430 million - $460 million, etc.

For the period ended January 31, fiscal 2025 net sales grew 6% to $6.553 billion. Excluding last year's gift card breakage benefit, comp sales grew 8% in the fourth quarter. Victoria's Secret brand grew low double digits in the fourth quarter. PINK returned to growth, growing high single digits driven by increased apparel penetration and renewed momentum in bras. Beauty grew low single digits in the quarter. International net sales increased 43% year over year in the fourth quarter, led by strength in China.

• Fiscal 2026 net sales expected to be $6.850 billion to $6.950 billion (5%-6% growth). • Operating income expected $430 million to $460 million. • Net income per diluted share expected $3.20 to $3.45. • First quarter 2026 net sales range $1.490 billion to $1.525 billion (10%-13% growth), operating income $32 million to $42 million, gross margin rate about 35.5%.

• Tariff pressure: Assumes tariff rates in place prior to recent developments, with first quarter having largest impact. • Middle East situation: Shipments to North America experiencing delays, and franchise partners in Middle East with store closures, but impact mitigated by royalty model. • DailyLook and Adore Me businesses: Ongoing strategic review, with Adore Me having impairment and restructuring charges.

Q: Matthew Boss asked about new customer acquisition trends and marketing plans.

A: Hillary Super said new customer growth across all types, younger customers, and marketing is just starting with many events planned.

Q: Matthew Boss followed up on first quarter momentum.

A: Scott Sekella said momentum from holiday and Valentine's carried in, February easy comp, Q1 guide 10%-13%.

Q: Simeon Siegel asked about brand size and AUR.

A: Hillary Super said broad runway, strong bra AUR and PINK apparel AUR.

Q: Mauricio Serna asked about turnaround inning and market share.

A: Hillary Super said early to mid, market share increases from value sector.

Q: Mauricio Serna followed up on tariff cadence.

A: Scott Sekella said first quarter biggest impact, tariff rates prior to SC ruling.

Q: Corey Tarlowe asked about 2026 first half changes.

A: Hillary Super said new floor sets, marketing optimization.

Q: Corey Tarlowe followed up on upside.

A: Scott Sekella said momentum carry into Q2, sustainable growth.

Q: Brooke Roach asked about marketing spend and merch margin.

A: Scott Sekella said marketing spend slight uptick, merch margin from promo reduction and pricing.

Q: Marni Shapiro asked about PINK assortment.

A: Hillary Super said 30% intimates, 30% core icons, 30% collaborations, evolving active and beauty.

Q: Ike Boruchow asked about U.S. comp and margin.

A: Scott Sekella said no shifts, margin from promo, incentive comp.

Q: Dana Telsey asked about PINK pop-up and fashion show learnings.

A: Hillary Super said PINK pop-up as lab, fashion show learnings on media activation, global talent.

Q: Adrienne Yih asked about bras feedback and Middle East disruption.

A: Hillary Super said reeducating on bras, cadence of launches; Scott Sekella said Middle East delays and franchise impact