American lingerie brand Victoria's Secret reported a sales rebound in the last quarter and forecasts that 2026 could be its best year since spinning off from parent company L Brands in 2021. The company recorded sales growth, but its stock fell due to investor concerns about higher operating expenses and retail market tensions. The brand's new strategy focuses on its core bra offering and attracting a younger generation of consumers.

Sales Rebound and Forecasts

Victoria's Secret recorded sales growth in the last quarter and forecasts that 2026 will be its most favorable year in terms of financial results since becoming an independent public company after separating from L Brands in 2021.

Stock Price Decline

Despite positive sales results, the company's stock fell. Investors reacted negatively to concerns related to the company's rising operating expenses and difficult conditions in the retail market.

New Strategy Focused on Gen Z

As part of its restructuring and return to a growth path, the company is focusing on its core bra assortment and on acquiring customers from Generation Z, which is intended to be key to rebuilding the brand's position.

American apparel company Victoria's Secret recorded a sales rebound in the last quarter and presented optimistic forecasts for the current fiscal year, indicating the possibility of achieving its best results since being spun off from the structure of L Brands in 2021. According to a Bloomberg report, the company predicts that 2026 could be a record year for it in terms of financial performance. This positive signal stems from improved sales, which according to The Wall Street Journal increased in the latest reporting period.

Victoria's Secret was founded in 1977 by Roy Raymond in San Francisco and for decades was the world's largest women's lingerie retail chain, known for its lavish fashion shows and marketing campaigns featuring so-called "angels." In the 2010s, the brand began to lose relevance amid criticism for promoting unrealistic beauty standards and growing competition from inclusive brands. In 2021, after years of struggles, it was spun off from the L Brands holding and began trading on the stock exchange as an independent company.

Despite optimistic forecasts and sales data, the company's stock price fell. The Wall Street Journal indicates the cause was the market's reaction to concerns about the company's higher operating expenses and general tensions in the retail sector. Investors reacted cautiously to the prospect of increased costs, which could limit profits despite revenue growth. Meanwhile, Axios emphasizes that a key element of the brand's recovery strategy is a return to basics, focusing on bra sales, and targeting its offerings to a younger consumer generation, referred to as Gen Z. This change aims to renew the company's image and adapt it to contemporary customer expectations.

Victoria: 2021: 6.7, 2022: 6.3, 2023: 6.1, 2024: 6.5, 2025: 7.0, 2026: 7.8

„We're getting back to our roots. We're focusing on what we do best, which is beautiful and functional lingerie that makes women feel good.” — Martin Waters, CEO of Victoria's Secret This strategy is part of a broader brand transformation, which in recent years has struggled with declining popularity and the need for a radical image change. The sales rebound in the last quarter may indicate that the new direction is starting to yield initial results, although the drop in stock prices highlights that investors remain vigilant about financial and competitive challenges. The company must prove that its market comeback is sustainable and that it can effectively compete with new, more inclusive brands that have gained significant shares in the lingerie segment.

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