Victoria's Secret Q2 revenue rises 10.4%, EPS beats estimates, full-year outlook raised

Victoria's Secret & Co. reported a 10.4% revenue increase in Q2 2026 and earnings per share that exceeded expectations despite a slight revenue miss. The company raised its full-year revenue guidance to $7.10–$7.18 billion and operating income to $560–$590 million, driven by strong comparable sales and new product momentum. Profitability improved significantly, helped by a $140.3 million tariff refund, with adjusted net income more than doubling and net debt falling to $453 million. Despite a higher relative valuation than some peers, the stock remains undervalued on an absolute basis, supporting a Buy rating as the company’s transformation continues to create upside potential.