Jun. 15 at 8:47 PM
S&P Global Ratings revised its outlook on Victoria's Secret to positive from stable while affirming the company's 'BB-' issuer credit rating, citing stronger-than-expected operating performance and double-digit market share gains during the first quarter of 2026.
Victoria's Secret reported 15% revenue growth in Q1, driven by a 13% increase in comparable sales. The company saw a 50% jump in app downloads, mid-single-digit traffic growth in physical stores, and double-digit increases in new customers, particularly among consumers aged 18 to 24. Growth was also supported by stronger customer acquisition across both lower- and higher-income households despite fewer promotional activities.
S&P expects adjusted operating margins to improve to the mid-to-high 17% range in fiscal 2026, up from 16.6% in fiscal 2025, while forecasting approximately 8% revenue growth supported by new store openings, brand initiatives, and influencer partnerships.
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