Victoria's Secret & Co.

Good morning. My name is Amanda, and I will be your conference operator today. At this time, I'd like to welcome everyone to the Victoria's Secret & Company's third quarter 2025 earnings conference call. Please be advised that today's conference is being recorded. All parties will remain in a listen-only mode until the question and answer session of today's call. I would now like to turn the call over to Priya Trivedi, Senior Vice President and Global Head of Investor Relations and Treasury, of Victoria's Secret & Company. Priya, you may begin.

Good morning, and welcome to Victoria's Secret & Company's third quarter earnings conference call, but the period ended November 1st, 2025. I would like to remind you that any forward-looking statements we may make today are subject to our safe harbor statement found in our SEC filings and in our press releases. Joining me on the call today is Chief Executive Officer Hilary Super, and Chief Financial and Operating Officer, Scott Sotelo. We are available today for approximately 30 minutes to answer any questions. Certain results we discuss on the call today are adjusted results and exclude the impact of certain items described in our press releases and in our SEC filings. Reconciliations of these and other non-GAAP measures to the most comparable GAAP measures are included in our press release, our SEC filings, and in the investor presentation posted on the investor section of our website.

With that, I'll turn the call over to Hilary. Thanks, Priya. Good morning, everyone, and thank you for joining us today. I am pleased to share that we delivered standout third quarter results with outperformance on the top and bottom lines that far exceeded the high end of our guidance. These outstanding results reflect what we can achieve as we advance our path to potential strategy, which is built around four pillars. supercharging our bra authority, recommitting to pink, fueling growth and beauty, and evolving our brand projection and go-to-market strategy. This is the first quarter that our new leadership team has been fully on board, and their impact is clear. When the implementation of our strategy is aligned and working in concert, it creates a powerful multiplier effect, accelerating global growth, elevating the distinctiveness of our brands, and unlocking greater value across our ecosystem to drive sustained shareholder returns. A great example of this multiplier effect was the iconic Victoria's Secret fashion show. Brand right product, a major upper funnel moment, and digital and social amplification came together, propelling us into the cultural conversation, ultimately driving mind share, customer share, and market share. This translated into tangible business impact, particularly in our Intimates business. In the quarter, our Intimates business returned to growth, up mid-single digits, resulting in us gaining over 1% share in the U.S. Intimates market. Additionally, a big unlock for the quarter was customer acquisition. Before I arrived, there was not enough focus here, and as a result, our active customer base was shrinking. We have made reversing that trend a priority. For the first time this year, our total customer file grew, and importantly, we saw growth coming from an increase in new customers. Now let's walk through third-quarter results. We delivered net sales of $1.47 billion, an increase of 9% versus last year, with robust adjusted gross margin expansion of 170 basis points and earnings growth of 45%. This was driven by growth across Victoria's Secret, Pink, and Beauty, and underpinned by broad-based outperformance across channels and geographies. Our international business continues to grow at an accelerated pace, with Q3 marking our third consecutive quarter of double-digit retail sales growth. Sales were up over 30% during the quarter, driven by exceptional performance in China, primarily in the digital channel. In late October, we saw a strong start to the 11-11 Singles Day selling period. These results continue to affirm our brand's global appeal and international's role as a growth engine. With Black Friday and Cyber Monday behind us, our fourth quarter is off to a strong start. We saw our highest Black Friday customer turnout since our spinoff, with roughly 1 million customers shopping our brands in North America, up high single digits from last year, and a strong engagement from new customers. Building on our third quarter outperformance and the momentum of the fourth quarter, we are raising our outlook for the year. With the strength of two iconic brands and a thoughtfully curated product assortment, amplified by our merchandising and marketing strategies, we are well-positioned to deliver a strong holiday season and a solid finish to fiscal 2025. Now let's turn to a signature brand moment for us as the world's leading intimates brand, the Victoria's Secret Fashion Show, which celebrated the new era of sexy, Masterfully blended pop culture with storytelling. It was a full force celebration of our community brought to life by a dynamic lineup of global music artists, including Madison Beer, Carol G, Twice, and Missy Elliott, alongside iconic runway talent and fresh faces. Pink's moment in the spotlight sparked tremendous excitement, amplifying the impact of the entire event and elevating the experience for fans around the world. The show once again became a cultural phenomenon. In the four weeks following the show, streaming views reached approximately 61 million, up over 60% versus last year. We gained nearly 9 million new social followers, and total media impressions hit 51 billion, an increase of over 30% versus last year. On show day alone, the event dominated fashion media. With over 42 billion impressions, while traffic to our site surged over 60% year-over-year, converting over 15% more new customers. Post-show, Victoria's Secret kept the cultural spotlight, converting the buzz into measurable business results as engagement soared across search volume, click-through rates, positive sentiment, and brand desire. The fashion show delivered strong commercial impact, significantly exceeding both last year's results and our expectations. The halo from the show is evident across our business, from the increased demand for sexy and glamorous bras and related lifestyle collections to renewed traction for iconic VS brand codes. Shoppable product linked to the event doubled year over year, with several key styles selling out. We also launched our holiday collection alongside the show, which started strong in the third quarter and continues to perform well. The show serves as a powerful customer acquisition engine. We saw double-digit growth in new and reactivated customers following the event with particularly strong traction among the 18 to 34-year age group. The show remains an unrivaled cultural event fueling growth, brand love, and engagement while reinforcing our leadership in the global intimates market. This year's fashion show was a defining moment, allowing us to show the world how we've evolved into our new era of sexy, In this era, beauty is no longer a singular standard. It's on her own terms, a conscious, liberating choice. Some of this shift is subtle. It's in the tone, the gaze, the feeling. And some of it is unmistakable. More diverse bodies and ages, a fuller spectrum that's joyful at its core, and an expanded product assortment that empowers her to feel exactly how she wants. Our role isn't to dictate or to define. It's to meet women where they are, to inspire them, listen to them, and reflect the many ways they show up today. Now let's review the meaningful progress we made in the third quarter across each pillar of our path to potential strategy. Turning to our first strategic pillar, supercharging our bra authority. Bras are the heart of our business, and we are a market leader in the bra category. We want to reinforce our position as her number one destination for all bras because when we win in bras, it creates a halo effect across our entire brand. Our bra customer is among our most valuable and loyal. She spends more, visits us more frequently, and shops additional categories, reinforcing her connection with us. To achieve this, we are delivering market-leading innovation with style and fashion that solves real lifestyle needs. We are educating with authority to showcase our expertise. We are amplifying our digital marketing voice through a social-first approach to attract new customers and grow the value of existing ones. And we are elevating the experience with bra fitting experts in top stores and creating emotional, connected digital experiences. These actions position us to unlock significant growth and deepen loyalty through an exceptional bra experience. The third quarter showcased our ability to win across the bra lifestyle spectrum with a frequent drumbeat of fashion and innovation complemented by sharp messaging. The Body by Victoria Flex Factor Bra, with the tagline Better Than Braless, delivered casual comfort and innovation and has quickly become one of our top styles, driving incremental growth. Ahead of our fashion show, we activated a sophisticated campaign for the Very Sexy franchise, which delivered impressive results. Finally, in sport, we expanded our range of support levels, reinforcing our authority in sports bras across all wearing occasions. In North America, our Victoria's Secret bra business delivered a mid-single-digit increase in the third quarter, signaling a strong return to growth in the category. Performance was steady throughout the quarter across our bra offering from casual to sexy and glamour, with the latter accelerating with a heightened interest around the fashion show. As a result, we grew our share of the U.S. bra market by low single digits, a nice acceleration from last quarter. By connecting emotionally with the customer, we've been able to increase regular price selling, pull back on promotions, and execute select strategic price increases, all while growing the bra-based business. As our bra category accelerated, so did the rest of Victoria's Secret brand. For the fourth quarter, we've been very pleased with the response to our Intimates collection thus far, and momentum continues to build. The VS lifestyle extends into sexy and casual sleepwear and gift sets, a key gifting category for the quarter. Then as we transition into post-holiday, we are excited to unveil a fresh Valentine's Day assortment designed to keep our customer engaged and inspired. The Victoria's Secret brand proposition of sexy, glamorous, and luxurious is clearly resonating. The customer is responding, returning, and re-engaging with the brand. As we continue to innovate, deliver differentiated product, and communicate in compelling ways, we are not just succeeding, we are gaining share. Our next pillar is recommitting to pink. Pink has long been an iconic, immediately recognizable, and beloved brand. We are focused on returning Pink to its roots as a lifestyle brand designed for 18 to 24-year-olds, a segment we pioneered and once dominated. That means reestablishing Pink's identity as digitally first and socially driven, while staying true to its DNA, bold, playful, and irreverent. This is at the heart of everything we do, from product design to storytelling. By showing up in the moments that matter most to her and creating compelling products and experiences, we are building the emotional connections needed to win her loyalty for the long term. Pink delivered an outstanding third quarter, with double-digit sales growth accelerating from the second quarter. As we increase our apparel penetration, we are delivering frequent fashion to create a steady drumbeat of newness. We showed up in key moments like back to school, game day, and Halloween, supported by culturally relevant and entertainment-led digital and social content. Our record-breaking Love Shack Fancy collaboration and Pink's inclusion in the fashion show also fueled awareness and connection. Our Love Shack Fancy collaboration was highly successful. We seized the launch on our social channels and hosted a pop-up event in New York City with media and influencers. At launch, traffic to our site soared, and we logged our highest five minutes of digital volume ever. Importantly, this is all at regular price and incremental to the base Pink business. This buzz translated into authentic brand content that drove engagement across social channels. Nearly 15% of customers shopping this collaboration were new or reactivated. Pink also took center stage at the fashion show with the K-pop sensation TWICE and a lineup of talent that appeals to Gen Z. This collaboration resonated with our target customer and reintroduced Pink to their highly engaged fan bases. The Wear Everywhere bra worn by TWICE sold out following the performance and related content on social media went viral, generating over 52 million views to date. Pink intimates also returned to growth, signaling positive momentum across the brand. This remarkable post-show lift in Pink Intimates reinforced a key insight. With the right innovation and brand experience, Pink Intimates can unlock meaningful growth. Pink has gotten off to a strong start in the fourth quarter. Earlier this week, we launched our second collaboration with Love Shack Fancy. Pink is regaining its spark, and we are confident in our strategy to drive growth, deepen customer connection, and build long-term brand value. Our next pillar is fueling growth in beauty. a powerhouse business nearing $1 billion in net sales in North America. Beauty is a high-frequency category, and our beauty customer is our second most valuable in spend. Yet only 40% of our customers purchase beauty, which is a clear opportunity. To capture this, we are investing in talent to scale Victoria's Secret Beauty, build a differentiated offering for pink beauty, and strengthen our innovation pipeline. We're putting innovation at the forefront while enhancing merchandising and speed to market capabilities to consistently deliver fresh, exciting products. With a strong team in place, we see tremendous runway for growth in North America and internationally. In the third quarter, our beauty business grew low single digits, building on last year's mid-teens increase. An important reason our business is thriving is because we listen and act. After last year's fashion show, customers asked for more glamour, so we delivered runway exclusives, and the response was electric. This year, the customer buzz after the fashion show got even louder, and we are turning those insights into innovation for our upcoming product launches. Scent is our secret weapon. It creates lifelong memories and a deep emotional connection with our brand. You see it with Bombshell, which is America's number one fragrance. This quarter, we introduced the holiday edition of Bombshell and launched our first integrated lifestyle campaign for the Very Sexy franchise, bringing together intimates and the restaged fragrance, which drove solid growth. For the fourth quarter, beauty is a key gifting category. We have a full selection of fine fragrances, mists, and beautifully packaged gift sets heading into the holiday season. We are investing in the future of this business to innovate and differentiate to capture market share across North America and internationally where beauty is a key category. Finally, evolving our brand projection and go-to-market pillar. We are creating a compelling shift in our market presence, more purposeful, more provocative, and more aligned with who our customer is today. Our focus is on driving brand heat to reclaim mind share, which ultimately fuels market share and growth. Over the past year, we clarified our target customer for each brand's positioning. This clarity informs every decision, from product creation to how our brand shows up in the world, helping to reestablish our relevance and leadership position. To capture mindshare, we are continuing to fine-tune our marketing investments. This includes right-sizing direct mail spend to protect our most valuable customers while investing in digital and social marketing. We are leveraging owned channels that reach more than 145 million followers and expanding influencer campaigns, all with a sharp focus on acquiring new customers. We are delivering bold, entertainment-led creative content that is forging an emotional connection. Our approach is working. The momentum and brand buzz and mindshare gains are evident with the commercial success of our Flex Factor Bra launch in late July, Love Shack Fancy collaboration in early August, and the ultimate cultural moment, our fashion show in mid-October. This strategic marketing shift combined with our product initiative, is also driving meaningful customer growth. In the third quarter, our total customer file grew low single digits, a significant improvement over the second quarter. We saw gains across all customer segments, new, reactivated, and active, with our new customers showing the biggest shift in trend. Additionally, we saw nice increases in both the number of customers and average sales per customer across all income cohorts. Our gains in mind share and customer share are translating into market share. In the third quarter, despite the total US Intimates market declining, we grew our share of the market by over 1%, driven by growth across our Intimates business. This was our second consecutive quarter of gaining market share, reinforcing that our growth is not dependent on the category growing. It comes from creating desire, building brand heat, and providing exceptional customer experiences. Our brand projection and marketing efforts are delivering heightened awareness deeper affinity, and increased relevance. Victoria's Secret is now dominating the conversation and moving into the center of culture, converting buzz into measurable business impact and market share gains. In closing, we delivered a standout third quarter with sales and earnings growth that positions us to raise our outlook for the year. We feel confident in our ability to execute, but are being thoughtful about the consumer, particularly post-holiday. We are heading into the holiday season with momentum and are well positioned to deliver a strong finish for the year. I would like to thank our incredible, talented, and passionate teams for their tireless work in driving our transformation strategy forward and for delivering exceptional service to our customers every day. When the implementation of our path to potential strategy is aligned and working in concert, it creates a powerful multiplier effect, unlocking greater value across our ecosystem. We are reinforcing our leadership in global intimates and beauty to drive sustained long-term profitable growth. I will now turn it over to Scott to provide a financial overview of the quarter and our updated fiscal 2025 guidance. Scott?