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Is International Expansion the Key to Victoria's Secret's Next Leg?
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Key Takeaways
Victoria's Secret's international sales rose 44.9% in Q1 2026, reaching 18.4% of total sales.
VSXY saw mid-teens retail comp growth internationally, led by China's digital and social channels.
Victoria's Secret raised its fiscal 2026 guidance and plans up to 622 partner-operated stores by year-end.
Victoria’s Secret & Co. (VSXY - Free Report) is seeing growing contributions from its international business, underscoring the importance of overseas markets in its long-term growth strategy. In the first quarter of 2026, international sales increased 44.9% year over year to $287.4 million, significantly outpacing growth in North American stores and direct channels. International operations accounted for roughly 18.4% of total company sales during the first quarter, highlighting their increasing importance within the broader business.
Management noted that the international segment delivered another quarter of outstanding performance, including mid-teens retail comparable sales growth. China remained the standout market, driven primarily by the digital channel and continued strength in social selling initiatives. The company indicated that this performance builds on the momentum established throughout 2025 and reinforces China's position as a meaningful long-term growth opportunity.
Victoria’s Secret benefited from changes in its European operating structure. Beginning in the third quarter of 2025, digital orders in Europe were fulfilled through the company's new European distribution center and were reported within the international segment. Adjusting for this reporting shift, international sales still increased 36% in the first quarter, reflecting robust underlying demand across global markets.
The company is simultaneously expanding its global footprint through joint ventures and partner-operated stores. Victoria’s Secret expects its China joint venture network to grow further in fiscal 2026, while partner-operated locations are projected to increase to between 604 and 622 stores by year-end, creating additional avenues for long-term revenue expansion.
Supported by broad-based momentum across its business, Victoria’s Secret has raised its fiscal 2026 outlook and expects net sales of $7.03-$7.13 billion and adjusted operating income of $550-$580 million. With rising international brand awareness, expanding store networks and strengthening digital engagement, overseas markets appear poised to remain an important contributor to the company’s long-term growth trajectory.
VSXY’s International Performance Compared With TPR & WWW
Tapestry, Inc. (TPR - Free Report) and Wolverine World Wide, Inc. (WWW - Free Report) are the key apparel companies competing with Victoria’s Secret in the global arena.
Tapestry posted strong international growth in the third quarter of fiscal 2026, with Europe revenues rising 21% year over year and Greater China sales increasing 55% on a constant-currency basis. Growth was supported by strong customer acquisition, market share gains and broad-based demand across channels, while Other Asia revenues increased 16%, led by South Korea and Australia. Tapestry's direct-to-consumer model and targeted regional strategies continue to support efficient global expansion and deepen consumer engagement across key international markets.
Wolverine posted strong international growth in the first quarter of 2026, with international revenues rising 20.1% year over year to $249.6 million, or 12.8% on a constant-currency basis. Merrell and Saucony drove growth across global markets, benefiting from strong sell-through, product innovation and targeted investments in key cities. Wolverine's diversified distribution network, spanning approximately 170 countries and territories, along with strategic partnerships across EMEA, Asia-Pacific and Latin America, continues to support efficient global expansion and strengthen brand momentum.
VSXY’s Price Performance, Valuation & Estimates
Over the past year, Victoria’s Secret’s stock has skyrocketed 272.9% compared with the Zacks Shoes and Retail Apparel industry’s 3.2% growth.
Image Source: Zacks Investment Research
From a valuation standpoint, the company trades at a trailing price-to-sales ratio of 0.97X, below the industry’s average of 1.44X. It has a Value Score of A.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for VSXY’s current and next financial years’ earnings implies year-over-year growth of 53.7% and 18.9%, respectively. Earnings estimates for fiscal 2026 and 2027 have been revised upward by $1.12 and $1.21, respectively, over the past 30 days.
View the Zacks #1 Rank List
Image: Bigstock
Is International Expansion the Key to Victoria's Secret's Next Leg?
Key Takeaways
Victoria’s Secret & Co. (VSXY - Free Report) is seeing growing contributions from its international business, underscoring the importance of overseas markets in its long-term growth strategy. In the first quarter of 2026, international sales increased 44.9% year over year to $287.4 million, significantly outpacing growth in North American stores and direct channels. International operations accounted for roughly 18.4% of total company sales during the first quarter, highlighting their increasing importance within the broader business.
Management noted that the international segment delivered another quarter of outstanding performance, including mid-teens retail comparable sales growth. China remained the standout market, driven primarily by the digital channel and continued strength in social selling initiatives. The company indicated that this performance builds on the momentum established throughout 2025 and reinforces China's position as a meaningful long-term growth opportunity.
Victoria’s Secret benefited from changes in its European operating structure. Beginning in the third quarter of 2025, digital orders in Europe were fulfilled through the company's new European distribution center and were reported within the international segment. Adjusting for this reporting shift, international sales still increased 36% in the first quarter, reflecting robust underlying demand across global markets.
The company is simultaneously expanding its global footprint through joint ventures and partner-operated stores. Victoria’s Secret expects its China joint venture network to grow further in fiscal 2026, while partner-operated locations are projected to increase to between 604 and 622 stores by year-end, creating additional avenues for long-term revenue expansion.
Supported by broad-based momentum across its business, Victoria’s Secret has raised its fiscal 2026 outlook and expects net sales of $7.03-$7.13 billion and adjusted operating income of $550-$580 million. With rising international brand awareness, expanding store networks and strengthening digital engagement, overseas markets appear poised to remain an important contributor to the company’s long-term growth trajectory.
VSXY’s International Performance Compared With TPR & WWW
Tapestry, Inc. (TPR - Free Report) and Wolverine World Wide, Inc. (WWW - Free Report) are the key apparel companies competing with Victoria’s Secret in the global arena.
Tapestry posted strong international growth in the third quarter of fiscal 2026, with Europe revenues rising 21% year over year and Greater China sales increasing 55% on a constant-currency basis. Growth was supported by strong customer acquisition, market share gains and broad-based demand across channels, while Other Asia revenues increased 16%, led by South Korea and Australia. Tapestry's direct-to-consumer model and targeted regional strategies continue to support efficient global expansion and deepen consumer engagement across key international markets.
Wolverine posted strong international growth in the first quarter of 2026, with international revenues rising 20.1% year over year to $249.6 million, or 12.8% on a constant-currency basis. Merrell and Saucony drove growth across global markets, benefiting from strong sell-through, product innovation and targeted investments in key cities. Wolverine's diversified distribution network, spanning approximately 170 countries and territories, along with strategic partnerships across EMEA, Asia-Pacific and Latin America, continues to support efficient global expansion and strengthen brand momentum.
VSXY’s Price Performance, Valuation & Estimates
Over the past year, Victoria’s Secret’s stock has skyrocketed 272.9% compared with the Zacks Shoes and Retail Apparel industry’s 3.2% growth.
Image Source: Zacks Investment Research
From a valuation standpoint, the company trades at a trailing price-to-sales ratio of 0.97X, below the industry’s average of 1.44X. It has a Value Score of A.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for VSXY’s current and next financial years’ earnings implies year-over-year growth of 53.7% and 18.9%, respectively. Earnings estimates for fiscal 2026 and 2027 have been revised upward by $1.12 and $1.21, respectively, over the past 30 days.
Image Source: Zacks Investment Research
Victoria’s Secret currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.