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Victoria's Secret Strengthens Growth Through Data-Driven Marketing
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Key Takeaways
VSXY accelerated new customer acquisition to low double-digit growth in fiscal Q1 through targeted marketing.
VSXY's Secret posted 15% net sales growth to $1.56 billion and a fourth straight quarter of positive comps.
VSXY raised fiscal 2026 sales and adjusted operating income guidance on continued digital investment.
Victoria’s Secret & Co. (VSXY - Free Report) is strengthening its growth through a digital customer acquisition strategy built around data-driven marketing, enhanced customer analytics and targeted media investments. The company is leveraging digital capabilities to reach shoppers more effectively, improve engagement and expand its customer base. These efforts are supporting stronger brand relevance, higher marketing efficiency and sustainable long-term growth under its Path to Potential strategy.
A key pillar of this strategy is the use of performance marketing and customer analytics to deliver more personalized and effective campaigns. Victoria's Secret has improved its ability to identify where, when and how customers engage with its brands, enabling it to optimize media spending and maximize returns. During the first quarter of fiscal 2026, new customer acquisition accelerated from mid-single-digit growth in the fourth quarter to low double-digit growth, while the overall customer file expanded at a mid-single-digit rate.
The company is combining its digital initiatives with immersive brand storytelling across Victoria's Secret and PINK. Consistent experiences across stores, mobile platforms and digital campaigns are strengthening customer engagement and driving stronger brand loyalty. Enhanced marketing precision and a broader mix of digital content have helped VSXY grow sales through higher customer counts and increased spending while reducing reliance on promotional activity.
These initiatives contributed to a strong first-quarter performance. Net sales increased 15% year over year to $1.56 billion, comparable sales rose 13% and the company recorded its fourth consecutive quarter of positive comparable sales. Growth was broad-based across Victoria's Secret, PINK and Beauty, as well as across channels and geographies, reflecting the success of its customer-focused digital strategy.
Backed by the momentum, Victoria's Secret raised its fiscal 2026 outlook. The company expects net sales of $7.03-$7.13 billion compared with its prior forecast of $6.85-$6.95 billion, while adjusted operating income is projected in the band of $550-$580 million, up from the previous guidance of $430-$460 million. Continued investments in digital marketing, customer analytics and targeted customer acquisition are expected to support profitable growth and strengthen the company’s competitive position.
VSXY’s Price Performance, Valuation & Estimates
Over the past three months, Victoria’s Secret’s shares have skyrocketed 67.7% against the Zacks Retail - Apparel and Shoes industry’s 0.3% decline.
Image Source: Zacks Investment Research
From a valuation standpoint, the company trades at a trailing price-to-sales ratio of 1.08X, below the industry’s average of 1.45X. It has a Value Score of B.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for VSXY’s current and next financial year earnings implies year-over-year growth of 55% and 19.1%, respectively. Earnings estimates for fiscal 2026 and 2027 have been revised upward by 4 cents and 6 cents, respectively, over the past 30 days.
Image Source: Zacks Investment Research
VSXY’s Zacks Rank & Other Key Picks
Victoria’s Secret currently sports a Zacks Rank #1 (Strong Buy).
The Zacks Consensus Estimate for Genesco’s current fiscal-year earnings indicates growth of 55.2% from the year-ago reported actuals. GCO delivered a trailing four-quarter average earnings surprise of 3.8%.
Canada Goose (GOOS - Free Report) is a global outerwear brand. Canada Goose is a designer, manufacturer, distributor and retailer of premium outerwear for men, women and children. The company flaunts a Zacks Rank #1 at present.
The Zacks Consensus Estimate for Canada Goose’s current fiscal-year earnings and sales indicates growth of 58.9% and 3.7%, respectively, from the year-ago reported actuals. GOOS delivered a trailing four-quarter average negative earnings surprise of 43.3%.
Designer Brands Inc. (DBI - Free Report) designs, produces and retails footwear and accessories. It offers shoes, boots, sandals, sneakers, socks, handbags and accessories. It currently carries a Zacks Rank #2 (Buy).
The Zacks Consensus Estimate for Designer Brands’ current fiscal-year earnings and sales suggests growth of 137.5% and 0.5%, respectively, from the year-ago reported actuals. DBI delivered a trailing four-quarter average earnings surprise of 112.8%.
View the Zacks #1 Rank List
Image: Bigstock
Victoria's Secret Strengthens Growth Through Data-Driven Marketing
Key Takeaways
Victoria’s Secret & Co. (VSXY - Free Report) is strengthening its growth through a digital customer acquisition strategy built around data-driven marketing, enhanced customer analytics and targeted media investments. The company is leveraging digital capabilities to reach shoppers more effectively, improve engagement and expand its customer base. These efforts are supporting stronger brand relevance, higher marketing efficiency and sustainable long-term growth under its Path to Potential strategy.
A key pillar of this strategy is the use of performance marketing and customer analytics to deliver more personalized and effective campaigns. Victoria's Secret has improved its ability to identify where, when and how customers engage with its brands, enabling it to optimize media spending and maximize returns. During the first quarter of fiscal 2026, new customer acquisition accelerated from mid-single-digit growth in the fourth quarter to low double-digit growth, while the overall customer file expanded at a mid-single-digit rate.
The company is combining its digital initiatives with immersive brand storytelling across Victoria's Secret and PINK. Consistent experiences across stores, mobile platforms and digital campaigns are strengthening customer engagement and driving stronger brand loyalty. Enhanced marketing precision and a broader mix of digital content have helped VSXY grow sales through higher customer counts and increased spending while reducing reliance on promotional activity.
These initiatives contributed to a strong first-quarter performance. Net sales increased 15% year over year to $1.56 billion, comparable sales rose 13% and the company recorded its fourth consecutive quarter of positive comparable sales. Growth was broad-based across Victoria's Secret, PINK and Beauty, as well as across channels and geographies, reflecting the success of its customer-focused digital strategy.
Backed by the momentum, Victoria's Secret raised its fiscal 2026 outlook. The company expects net sales of $7.03-$7.13 billion compared with its prior forecast of $6.85-$6.95 billion, while adjusted operating income is projected in the band of $550-$580 million, up from the previous guidance of $430-$460 million. Continued investments in digital marketing, customer analytics and targeted customer acquisition are expected to support profitable growth and strengthen the company’s competitive position.
VSXY’s Price Performance, Valuation & Estimates
Over the past three months, Victoria’s Secret’s shares have skyrocketed 67.7% against the Zacks Retail - Apparel and Shoes industry’s 0.3% decline.
Image Source: Zacks Investment Research
From a valuation standpoint, the company trades at a trailing price-to-sales ratio of 1.08X, below the industry’s average of 1.45X. It has a Value Score of B.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for VSXY’s current and next financial year earnings implies year-over-year growth of 55% and 19.1%, respectively. Earnings estimates for fiscal 2026 and 2027 have been revised upward by 4 cents and 6 cents, respectively, over the past 30 days.
Image Source: Zacks Investment Research
VSXY’s Zacks Rank & Other Key Picks
Victoria’s Secret currently sports a Zacks Rank #1 (Strong Buy).
Genesco Inc. (GCO - Free Report) is a Nashville-based specialty retailer and branded company. It sells footwear and accessories through retail stores. The company flaunts a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Genesco’s current fiscal-year earnings indicates growth of 55.2% from the year-ago reported actuals. GCO delivered a trailing four-quarter average earnings surprise of 3.8%.
Canada Goose (GOOS - Free Report) is a global outerwear brand. Canada Goose is a designer, manufacturer, distributor and retailer of premium outerwear for men, women and children. The company flaunts a Zacks Rank #1 at present.
The Zacks Consensus Estimate for Canada Goose’s current fiscal-year earnings and sales indicates growth of 58.9% and 3.7%, respectively, from the year-ago reported actuals. GOOS delivered a trailing four-quarter average negative earnings surprise of 43.3%.
Designer Brands Inc. (DBI - Free Report) designs, produces and retails footwear and accessories. It offers shoes, boots, sandals, sneakers, socks, handbags and accessories. It currently carries a Zacks Rank #2 (Buy).
The Zacks Consensus Estimate for Designer Brands’ current fiscal-year earnings and sales suggests growth of 137.5% and 0.5%, respectively, from the year-ago reported actuals. DBI delivered a trailing four-quarter average earnings surprise of 112.8%.