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 fourth quarter and fiscal 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, a Victoria's Secret and Company. Priya, you may begin.

Good morning, and welcome to Victoria's Secret and Company's fourth quarter and fiscal 2025 earnings conference call. The period ended January 31, 2026. Joining me in the call today is Chief Executive Officer Hillary Super and Chief Financial and Operating Officer Scott Patella. We are available today for approximately 30 minutes to answer questions. 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. 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. This is a standout year for our business. We returned to growth mode in 2025 with full-year comp sales up 5%. Fourth quarter and full-year results exceeded top and bottom line guidance, reflecting strength across brands, channels, and geographies. In the fourth quarter, we grew comp sales 8% to deliver our highest fourth quarter revenue since becoming an independent public company. Brand momentum is building, our customer file is growing, and we are gaining market share. Eighteen months ago, I joined Victoria's Secret because I saw one of the most compelling transformation opportunities in retail. To capture that opportunity, we put in place a clear roadmap for the business, our path to potential strategy, built on four pillars – supercharging our bra authority, recommitting to pink, fueling growth and beauty, and evolving our brand projection and go-to-market strategy. Throughout the year, we executed this strategy with focus and discipline. We assembled a leadership team that has rallied around the new direction for our business, recentering the organization around what matters most, creating emotionally compelling product, building brand heat, and deepening our connection with the customer. While still early in our transformation, the results to date are clear. We reasserted our leadership in bras, restoring the category to growth for the first time in four years. We reignited pink, delivering its strongest growth year in a decade. And we steadily grew our nearly $1 billion beauty business. We also expanded our customer file for the first time in years. A signature brand moment in 2025 was the fashion show, which reestablished Victoria's Secret at the center of the cultural conversation and translated directly into business momentum. It also marked a meaningful step forward in our new era of sexy, defined not as a single look or standard, but as a feeling of confidence and authenticity. The progress we made in 2025 reflects a deliberate evolution in how we operate. When we combine great product, powerful storytelling, and an elevated experience, our customer responds. I'd like to spend a few moments discussing our holiday and Valentine's Day execution, which reflects marked improvement versus the prior year. I'll then cover our international performance, followed by the progress we are making against our strategic pillars. Scott will then walk you through our detailed financials and 2026 outlook. As we reflected on last year's holiday and Valentine's seasons, we saw an opportunity to further strengthen our position and translate learnings and insights into growth. In 2025, we amplified the fashion show to drive sustained traffic and engagement through November and into Black Friday, delivering our highest customer turnout since 2021, with strong participation from new customers. In December, we maintained a consistent cadence of fashion newness, especially in bras and sleep. We supported key categories with deliberate inventory investments, targeted digital and social marketing, and refreshed store windows and merchandising. In particular, sleep significantly outperformed expectations and became a key growth engine for the business during the quarter. For Valentine's Day, we reinforced Victoria's Secret as the destination. We shortened the semi-annual sale and set the assortment earlier, extending the selling window and broadening the lifestyle offering. For VS, this was my favorite floor set since joining the business. Elevated, beautifully executed, and undeniably Valentine's Day. Anchored in bras, the floor set was powerful and offered a range of sensibilities from glamorous to casual. We supported the launch with a high-impact campaign featuring Haley Beaver driving engagement and new customer acquisitions. At Pink, we built on the viral fashion show moment featuring the K-pop group TWICE with a bra-centered Valentine's Day campaign. The campaign focused on self-expression, friendship, and empowerment in a way that was unmistakably pink. The campaign resonated and drove continued acceleration in the pink bra business. The VS and Pink Valentine's collections outperformed our expectations, delivering double-digit sales growth. The week of Valentine's Day, store traffic increased significantly year over year, meaningfully outperforming the mall. Turning to international, for the fourth quarter, net sales increased 43% year over year, with growth across channels and geographies, led by continued strength in China. In that market, social commerce and live streaming are critical to the purchase journey and powerful drivers of engagement and conversion. This year, we took a more coordinated global approach to product, marketing, and storytelling. We aligned our merchandising to our strategic pillars to ensure each market delivers the right assortment and messaging. We have complemented our global assortment with exclusive local product, allowing us to move quickly to meet demand. We also benefited from a more global approach to the fashion show, resulting in a brand halo that extended internationally. During my recent visit, I saw firsthand the work our teams are doing to drive outsized results, and I am confident we have significant runway to grow digitally and in stores. International remains a significant long-term opportunity for us. In fiscal 2026, we expect to deliver double-digit growth by expanding in existing markets, entering new markets, and maximizing our digital and social commerce opportunity. Now let's turn to the progress we've made in each of our four pillars of the strategy. We'll begin with supercharging our bra authority. Over the past year, we've put bras back at the center of the Victoria's Secret brand while strengthening our operating muscle. Recognizing that bras are not typically a holiday gifting category, we focused on our core franchises. We delivered a steady flow of newness as well as fun in the assortment, supported by digital storytelling and the right inventory levels to meet demand. Our disciplined execution drove outsized growth across our top bra franchises and sustained customer engagement through the holiday. As a result, the Victoria's Secret bra business grew mid-single digits in the fourth quarter. We continued reducing promotions throughout the year, which drove a mid-single digit increase in our bra AUR. This performance was partially enabled by our industry-leading bra fitting experts who build meaningful connections that deepen customer loyalty in our stores. Our efforts returned the Victoria's Secret brand bra business to annual growth for the first time since 2021. When we win in bras, we see a halo across the brand. That effect was evident in panties as well as in sleep, which I noted earlier. We've made panties more fun and playful. We introduced more newness, balanced our silhouette offering, and expanded fabrics. The results were strong. VS Panty AURs increased and the business significantly accelerated in the fourth quarter, driving our best performance in panties since 2021. This momentum is particularly meaningful since this is our number one new customer acquisition category. We leaned into sleep this quarter, an important gifting category and a meaningful driver of Q4 performance. Sleep is highly visible. Customers wear it, share it, and signal their affinity for the Victoria's Secret brand. Our social channels were flooded with real moments as our sleep assortment was celebrated in posts from holiday gatherings, family photos, theme parties, and festive occasions. Our iconic sleep assortment was a standout through the holiday and into Valentine's Day, led by Hero Styles in logo and heritage stripes. Applying insights from the last year, we were better positioned with inventory and digital activation to capture demand. As a result, Sleep delivered outsized growth and became our third largest new customer acquisition category in the quarter. Altogether, the Victoria's Secret brand delivered low double-digit growth for the quarter, a clear demonstration of the multiplier effect of our strategy. We carried our momentum into the first quarter with the outperformance of our Valentine's Day collection and immediately followed with the launch of the Victoria's Secret Signature Collection. Signature elevates the comfortable bra she reaches for every day, bringing new energy to an essential category, and is anchored by our best-selling wireless t-shirt bra, featuring a stylized update to our classic logo. The collection was supported by a thumb-stopping campaign with a cast of fan-favorite VS Angels that drove strong social engagement and cultural buzz. Beyond Signature, we have a powerful pipeline of innovation. Watching our spring floor sets come together genuinely made my heart race. They're vibrant, saturated with color, and completely alive. I can't wait to see customers step into this experience and feel that same energy. Our second pillar is recommitting to pink. For several years, the brand had drifted from its core, losing clarity, energy, and cultural edge. In 2025, we reset the foundation and returned pink to a differentiated position, a digitally native, socially driven lifestyle brand for 18 to 24-year-olds rooted in its bold, playful, and irreverent DNA. One year into our path to potential strategy, Pink has a stronger brand definition, growing awareness and relevance, and renewed affinity. All of this is showing up in the numbers. In the fourth quarter, Pink grew high single digits, driven by increased apparel penetration and renewed momentum in bras. Importantly, we pulled back on promotions, driving more regular price selling and double-digit AUR expansion, which benefited margins across Pink's portfolio, showing that the brand is regaining pricing power. On the apparel side, Pink won the holiday season with core icon styles and fashion newness. Our Wednesday drops have become highly anticipated as customers check in regularly with growing urgency to purchase, and our second drop from Love Shack Fancy collaboration resonated with our brand fans and drove significant regular price selling in December. Pink's bra business also exceeded expectations for the quarter. Twice's appearance in the fashion show sparked viral demand and drove two sellouts of the Wear Everywhere bras. We built on that momentum by featuring TWICE again in our Valentine's Day campaign, deepening the emotional connection with our customer. I saw that firsthand during a visit to our Dayland Mall store in Miami, where young customers gathered together to dance and learn the choreography. This is exactly the kind of emotional connection that we have been working towards. The TWICE campaign became our most viewed pink campaign ever, generating more than 79 million social views. Pink app downloads increased 50% in the quarter as customers sought early access to drops and exclusive product, with downloads accelerating further following the Valentine's Day launch. Importantly, pink brand equity and consideration among 18- to 24-year-olds are at their highest levels in years. As we enter the first quarter, we are maintaining a disciplined cadence of product newness, activating around spring break, continuing to innovate our icon styles, and seeing early progress in revitalizing the pink panty category. Later this year, we will open a standalone Pink pop-up in Soho, New York, bringing the brand to life physically. In 2026, we see a long runway to expand Pink. Our focus is on building relevance with Gen Z by celebrating the moments that matter to her and meeting her in her digital world through entertainment, culture, and community. By moving at the speed of culture, from high-impact moments like the fashion show and Valentine's Day to partnerships that spark conversation and engagement, we believe we can strengthen emotional connection and drive growth. Our third pillar is fueling growth in beauty. In beauty, scent is our secret weapon. It is often her first layer and her lasting impression tied to memory and the moments that matter most. For her, fragrance is emotional. For us, it's powerful. It creates loyalty and connection in a way that few categories can. This emotional resonance is translating into meaningful growth. Newness and fine fragrance, including the holiday edition of Bombshell, resonated strongly, amplified by integrated marketing across channels. As a result, beauty grew low single digits in the quarter, driving another year of growth for the business. Fine Fragrance continues to lead our beauty business and remains a key differentiator. While many brands compete primarily in myths, we have established ourselves as a world-class fine fragrance destination with craftsmanship and creative rigor of couture fashion houses. This is anchored by Bombshell, America's number one fragrance. We are investing in our team and creative capabilities in beauty. Looking ahead, we are strengthening our innovation pipeline, expanding into adjacencies, and differentiating Pink's beauty offering. We are also using real-time insights to respond to demand. We see a meaningful runway to accelerate growth in 2027 and beyond. Finally, our brand projection and go-to-market pillar is transforming how our brands show up. Over the past year, we have clarified each brand's distinct positioning. That clarity now guides our product, marketing, and cultural engagements. We have sharpened our marketing model, shifting investments towards digital and social, and leaning into bold, entertainment-led creative. This is allowing us to tell more brand stories on more platforms and with greater frequency. Recent examples include the January release of our behind-the-scenes fashion show documentary, which keeps the fashion show top of mind and brings the creativity and the people behind the brand to life. Social activations for the documentary have generated over 36 million views. Additionally, our Valentine's Day campaigns drove over 10.5 billion impressions, three times that of last year. These events extended the halo of our biggest brand moments. That brand heat is translating into strong results. In the quarter, we grew our total Intimates business at a high single-digit rate and expanded Intimates market share for the third consecutive quarter with share up low single digits. Our overall customer count grew at low single-digit rate, led primarily by new customer acquisitions, including amongst young customers, while retention among existing customers improved. Growth spanned both digital and stores, and spend per customer increased mid-single digits, reflecting the continued progress and quality of sale. At the same time, our brand relevance and purchase consideration metrics are at their highest levels in several years, including across digital. Our app is a highly engaging way to connect with customers, offering personalized experiences and deeper insights into how customers shop. In the fourth quarter, app downloads increased 25%, and our apps now drive approximately one-third of our digital sales. For the remainder of 2026, we continue to execute a disciplined cadence of brand-building moments. With sharper positioning, stronger consumer insight, and a more modern go-to-market model, we see a path to converting brand heat into sustained market share gains. In closing, we delivered exceptional results. One year in, the Path's potential strategy is taking hold, The acceleration in the back half of 2025 underscores the impact of our disciplined execution and sharper focus. This performance is especially meaningful because our team is just hitting its stride. Many members of the management team have been here for less than a year and are already driving tangible impact. Over the past several months, I've spent time in our stores across the U.S. and internationally. The energy of our teams and the engagement of our customers are unmistakable. We are listening closely, responding quickly, and translating real-time insights into incredible product and experiences. That responsiveness, combined with innovation and more effective marketing, has strengthened our trajectory and positions us to build on our success. We enter fiscal 2026 with strong momentum and confidence in our ability to lap our recent performance. The guidance we are issuing today reflects the strength building across all three businesses and how our path to potential strategy is creating a multiplier effect that supports sustained growth. I want to thank our teams for the commitment, creativity, and discipline they bring to this business every day. Our performance is a direct result of their execution. We are still early in this transformation, but the progress is real, the momentum is building, and the opportunity ahead is significant. With that, I will turn it over to Scott to walk through the financials and our fiscal 2026 guidance.