VS&Co Reports Strong Q2 Earnings and Raises Fiscal Year Guidance
VS&Co (ticker: VSXY) reported strong second-quarter results on September 3, 2026. The company achieved net sales of $1.611 billion, a 10% year-over-year increase near the high end of its guidance range. Adjusted operating income rose by 105% to $124 million compared to the prior year, and adjusted diluted EPS reached $0.95, surpassing expectations. The company raised full fiscal year 2026 guidance for net sales to between $7.1 billion and $7.18 billion—up from previous estimates—and increased its adjusted operating income forecast to a range of $560 million to $590 million. Management attributed the strong performance to higher regular price selling, improved gross margins (38.8%), and growth in key segments like Bra (+mid teens), PINK (+high single digits), and Beauty (+mid single digits). International revenue also surged by 20%, driven largely by China. Despite these gains, CFO Scott Sekella noted potential headwinds from rising transportation costs that could impact third-quarter gross margins. CEO Hillary Super mentioned lower inventory levels during the semiannual sale had a minor negative effect on sales.
Topics: earnings EPS guidance operating income revenue growth