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Victoria's Secret Sees Strong International Growth Led by China
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Key Takeaways
Victoria's Secret sees international markets as a major long-term growth opportunity.
VSXY's international sales rose 45%, with China driving strong digital and social engagement.
VSXY expects second-quarter sales growth of 9%-11%, supported by North America and international strength.
Victoria’s Secret & Co. (VSXY - Free Report) views international markets as a significant long-term growth opportunity and believes the business continues to have meaningful expansion potential. The company remains focused on capturing this runway, which reflects confidence in the long-term prospects of its international operations and future growth opportunities.
Victoria’s Secret’s international business continued to deliver strong momentum, with reported sales increasing 45% in the first quarter of fiscal 2026, including retail comparable sales growth in the mid-teens. Adjusting for the reporting shift from direct to European digital sales, first-quarter international sales increased 36%, reflecting continued strength across the company’s international operations.
China remained a key driver of the company's international business, while management reiterated that the overall international business represents a meaningful long-term growth opportunity. The company is seeing strong engagement across its digital and social channels in the market, which is helping strengthen customer relationships and increase brand awareness. It also emphasized a deliberate go-to-market approach, noting that it is closely listening to customer feedback while refining its market strategy to support sustainable growth.
At the same time, VSXY is taking a thoughtful approach to marketing by tailoring campaigns to the specific needs and preferences of local markets, helping improve relevance and customer connections across different regions. Looking ahead, the company expects second-quarter fiscal 2026 net sales in the range of $1.59-$1.615 billion, representing 9%-11% growth, supported by continued momentum in North America and strength in its international business.
Overall, Victoria's Secret believes its disciplined international strategy, locally relevant marketing and growing brand engagement position the business to build on its long-term international growth runway.
The Zacks Rundown for VSXY
Shares of this Zacks Rank #1 (Strong Buy) company have gained 24% in the past six months against the industry’s decline of 12.8%.
Image Source: Zacks Investment Research
From a valuation standpoint, VSXY trades at a forward price-to-earnings ratio of 15.62, higher than the industry’s average of 14.44.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for VSXY’s current and next fiscal year earnings implies a year-over-year rise of 53.7% and 18.9%, respectively.
Image Source: Zacks Investment Research
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The Zacks Consensus Estimate for TPR’s current fiscal-year sales and earnings implies growth of 13.8% and 36.3%, respectively, from the year-ago figures. TPR has delivered a trailing four-quarter earnings surprise of 15.6%, on average.
Levi Strauss & Co. (LEVI - Free Report) designs, markets, and sells apparel and related accessories for men, women, and children in the United States and internationally. At present, LEVI carries a Zacks Rank of 2 (Buy).
The Zacks Consensus Estimate for LEVI’s current fiscal-year sales and earnings implies growth of 5.2% and 12.7%, respectively, from the year-ago figures. LEVI has delivered a trailing four-quarter earnings surprise of 21.4%, on average.
Fossil Group, Inc. (FOSL - Free Report) designs, develops, markets, and distributes consumer fashion accessories in the United States, Europe, Asia, and internationally. At present, FOSL carries a Zacks Rank of 2.
The Zacks Consensus Estimate for FOSL’s current fiscal-year sales indicates a decline of 4.9%, while the same for earnings indicates growth of 87.6% from the year-ago figures. FOSL delivered a trailing four-quarter negative earnings surprise of 381.8%, on average.
View the Zacks #1 Rank List
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Victoria's Secret Sees Strong International Growth Led by China
Key Takeaways
Victoria’s Secret & Co. (VSXY - Free Report) views international markets as a significant long-term growth opportunity and believes the business continues to have meaningful expansion potential. The company remains focused on capturing this runway, which reflects confidence in the long-term prospects of its international operations and future growth opportunities.
Victoria’s Secret’s international business continued to deliver strong momentum, with reported sales increasing 45% in the first quarter of fiscal 2026, including retail comparable sales growth in the mid-teens. Adjusting for the reporting shift from direct to European digital sales, first-quarter international sales increased 36%, reflecting continued strength across the company’s international operations.
China remained a key driver of the company's international business, while management reiterated that the overall international business represents a meaningful long-term growth opportunity. The company is seeing strong engagement across its digital and social channels in the market, which is helping strengthen customer relationships and increase brand awareness. It also emphasized a deliberate go-to-market approach, noting that it is closely listening to customer feedback while refining its market strategy to support sustainable growth.
At the same time, VSXY is taking a thoughtful approach to marketing by tailoring campaigns to the specific needs and preferences of local markets, helping improve relevance and customer connections across different regions. Looking ahead, the company expects second-quarter fiscal 2026 net sales in the range of $1.59-$1.615 billion, representing 9%-11% growth, supported by continued momentum in North America and strength in its international business.
Overall, Victoria's Secret believes its disciplined international strategy, locally relevant marketing and growing brand engagement position the business to build on its long-term international growth runway.
The Zacks Rundown for VSXY
Shares of this Zacks Rank #1 (Strong Buy) company have gained 24% in the past six months against the industry’s decline of 12.8%.
Image Source: Zacks Investment Research
From a valuation standpoint, VSXY trades at a forward price-to-earnings ratio of 15.62, higher than the industry’s average of 14.44.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for VSXY’s current and next fiscal year earnings implies a year-over-year rise of 53.7% and 18.9%, respectively.
Image Source: Zacks Investment Research
Other Stocks to Consider
Some other top-ranked stocks have been discussed below:
Tapestry, Inc. (TPR - Free Report) provides accessories and lifestyle brand products in North America, Greater China, the rest of Asia, and internationally. At present, TPR flaunts a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for TPR’s current fiscal-year sales and earnings implies growth of 13.8% and 36.3%, respectively, from the year-ago figures. TPR has delivered a trailing four-quarter earnings surprise of 15.6%, on average.
Levi Strauss & Co. (LEVI - Free Report) designs, markets, and sells apparel and related accessories for men, women, and children in the United States and internationally. At present, LEVI carries a Zacks Rank of 2 (Buy).
The Zacks Consensus Estimate for LEVI’s current fiscal-year sales and earnings implies growth of 5.2% and 12.7%, respectively, from the year-ago figures. LEVI has delivered a trailing four-quarter earnings surprise of 21.4%, on average.
Fossil Group, Inc. (FOSL - Free Report) designs, develops, markets, and distributes consumer fashion accessories in the United States, Europe, Asia, and internationally. At present, FOSL carries a Zacks Rank of 2.
The Zacks Consensus Estimate for FOSL’s current fiscal-year sales indicates a decline of 4.9%, while the same for earnings indicates growth of 87.6% from the year-ago figures. FOSL delivered a trailing four-quarter negative earnings surprise of 381.8%, on average.