Victoria’s Secret & Co. delivered a stronger-than-expected second quarter, posting a 10% rise in net sales to $1.61 billion and lifting its full-year outlook as the lingerie retailer benefits from tariff relief and steady demand. The company, which released results on Thursday, now expects fiscal 2026 net sales in the range of $7.10 billion to $7.18 billion, up from its previous guidance of $7.03 billion to $7.13 billion.
A significant contributor to the quarter was the receipt of more than $140 million in IEEPA tariff refunds, representing over 95% of the tariffs the company had paid under the International Emergency Economic Powers Act. The refunds provided a direct boost to the bottom line and helped underpin management’s decision to raise expectations for the remainder of the year. The improved outlook signals confidence that the sales momentum seen in the spring and early summer can be sustained through the crucial holiday period.
The results come at a time when the broader apparel sector is navigating uneven consumer spending, with shoppers increasingly selective about discretionary purchases. Victoria’s Secret has focused on refreshing its product assortment, strengthening its digital channels, and clarifying brand positioning across its Victoria’s Secret, PINK, and beauty lines. The company has also worked to stabilise inventory levels and reduce promotional dependence, moves that appear to be resonating with customers.
In a separate development within the beauty and personal care space, Wella Company filed for a US initial public offering on Monday. The KKR-backed hair- and nail-care firm, whose portfolio includes OPI, Clairol, Sebastian Professional, and Nioxin, reported revenues of $2.94 billion for the year ended June 30, 2026, up from $2.69 billion in the prior year. According to the filing, proceeds from the IPO will be used to repay debt and cover tax consequences related to a restructuring.
The two announcements underscore a broader pattern of activity across the fashion and beauty industries, as established players seek to capitalise on improving financial performance and favourable market conditions. For Victoria’s Secret, the combination of sales growth and tariff refunds provides a clearer runway as it heads into the second half of its fiscal year. For Wella, the planned listing represents a milestone in its transition under private equity ownership and a test of investor appetite for consumer brands with global reach.
Analysts will be watching whether Victoria’s Secret can maintain its growth trajectory, particularly as comparisons become more challenging and as the retail environment remains competitive. The company’s revised guidance suggests management sees more upside than risk in the months ahead, even as it continues to navigate shifting consumer preferences and evolving trade policies.