• Lululemon for lingerie and sleepwear.
• Bath & Body Works for lingerie and fragrances.

• Lingerie: A wide range of intimate apparel including bras, panties, shapewear, and sleepwear.
• Beauty Products: Fragrances, body lotions, mists, and other personal care items.
• Loungewear & Apparel: Comfortable clothing such as pajamas, robes, activewear, and other casual wear.
• Accessories: Complementary fashion items including bags, hosiery, and other small goods.

Victoria's Secret (symbol: VSCO) sells primarily to individuals, operating as a direct-to-consumer (B2C) retail company through its physical stores and e-commerce platforms. Its major customers can be categorized as follows:

• Women seeking fashion-forward and sensual intimate apparel and beauty products: This core customer segment is drawn to Victoria's Secret's legacy of alluring designs in lingerie, sleepwear, and its range of fragrances and body care. They often purchase for self-indulgence, special occasions, or to align with a perceived glamorous aesthetic.

• Women prioritizing comfort and everyday wear: As the brand has evolved, it increasingly caters to customers looking for comfortable loungewear, everyday basic bras and panties, and sleepwear. This segment values practicality, comfort, and inclusivity in sizing and styling, reflecting a broader appeal beyond traditional "sexy" offerings.

• Gift purchasers: A significant portion of sales comes from individuals purchasing items as gifts for others, such as partners, family, or friends. Victoria's Secret's brand recognition and product variety (from lingerie to beauty products) make it a frequent choice for gift-giving occasions.

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Hillary Super, Chief Executive Officer

Hillary Super has served as the CEO of Victoria's Secret & Co. since 2023, leading the company's strategic growth initiatives and brand revitalization. With over three decades of experience, she has driven growth and innovation across renowned fashion brands. Prior to joining Victoria's Secret, she was the CEO and board member of Savage X Fenty from 2023 to 2024. She also held the position of Global CEO for Anthropologie Group, where she successfully revitalized the women's apparel and accessories business, establishing the brand as a global lifestyle leader. Her career also includes significant merchandising and operational leadership roles at Gap, Old Navy, American Eagle Outfitters, and Guess?.

Scott Sekella, Chief Financial Operating Officer

Scott Sekella was appointed Chief Financial Operating Officer of Victoria's Secret & Co. in January 2025, succeeding Timothy Johnson, who is set to retire in June 2025. He previously served as the CFO of JOANN, a fabric and crafts retailer. Sekella also held financial leadership positions at Under Armour and Crocs. He is recognized for his extensive and diverse retail experience in identifying and accelerating strategies that enhance performance and profitability.

Melinda (Mel) McAfee, Chief Human Resources Officer and Chief Legal Officer

Melinda (Mel) McAfee joined Victoria's Secret & Co. in May 2021 as Chief Legal Officer, with her role expanding to include Chief Human Resources Officer in October 2022. She oversees governance, employment, privacy, regulatory compliance, and comprehensive legal strategy. Before Victoria's Secret, she was the Senior Vice President, General Counsel, and Corporate Secretary of EXPRESS, Inc. Her background also includes over 10 years as in-house counsel for Abercrombie & Fitch Co. and a partnership in the Labor & Employment practice at Vorys, Sater, Seymour and Pease, LLP.

Anne Stephenson, President, Victoria's Secret

Anne Stephenson became President of Victoria's Secret in May 2025. In this role, she is responsible for the brand's product strategy, brand development, and merchandising excellence. With over 25 years of experience in merchandising and brand leadership, Stephenson has previously served as Chief Merchandising Officer at Victoria's Secret & Co. and as chief merchant at Full Beauty Brands and Torrid. She also has more than 15 years of prior experience with Victoria's Secret.

Elizabeth Preis, Chief Marketing and Customer Officer

Elizabeth Preis serves as the Chief Marketing and Customer Officer of Victoria's Secret & Co. She is an experienced marketing executive with over 25 years in guiding iconic consumer brands. Her previous leadership roles include Global CMO at Anthropologie, as well as positions at Estée Lauder, J. Crew, and Saks Fifth Avenue. Preis is known for her ability to combine consumer insight with creative strategies to build strong brand connections.

The key risks to Victoria's Secret & Co. (VSCO) primarily revolve around its struggle to maintain brand relevance in a dynamic market, persistent financial challenges, and operational vulnerabilities.

1. Declining Brand Relevance and Intense Competition: Victoria's Secret has faced significant challenges in adapting its brand image to evolving consumer preferences. The company's historical marketing, which featured "Angels" and promoted a singular, often hyper-sexualized, beauty standard, has been deemed outdated in an era prioritizing body positivity, inclusivity, and comfort. This shift has led to increased competition from new brands that effectively cater to diverse body types and preferences, impacting Victoria's Secret's market share and sales. Despite rebranding efforts, the effectiveness of these changes in resonating with modern consumers and regaining market dominance remains a critical ongoing risk.
2. Financial Performance and Macroeconomic Headwinds: Victoria's Secret has experienced declining sales and significant pressure on its profitability. The company's financial health grades indicate concerns, particularly regarding high leverage and financial stress. Economic downturns or recessions can reduce consumer spending on non-essential items like luxury lingerie, further impacting the company's revenue and results. Elevated tariff risks also pose a significant headwind, directly impacting margins and potentially increasing costs.
3. Operational Vulnerabilities (Cybersecurity and Supply Chain): Victoria's Secret faces risks related to the reliability of its IT systems and the security of its data. A recent cybersecurity incident forced a temporary shutdown of its e-commerce platform and corporate systems, highlighting vulnerabilities that could erode consumer trust and incur future financial impacts. Additionally, the company is exposed to supply chain volatility, including issues like freight costs, vendor reliability, and labor disputes in key production regions. Any significant disruptions to these facilities could lead to inventory shortages, increased costs, and adversely affect operations.

Victoria's Secret (symbol: VSCO) operates in the addressable markets of lingerie, activewear, and beauty and personal care products. The estimated market sizes for these product categories are detailed below:

Lingerie Market

• Global: The global lingerie market was valued between approximately USD 44.92 billion and USD 94.63 billion in 2024. It is projected to grow to a range of approximately USD 69.38 billion to USD 165.69 billion by 2032 or 2033, with Compound Annual Growth Rates (CAGR) varying from 5.78% to 8.67% over the respective forecast periods.
• U.S.: The U.S. lingerie market was estimated to be between USD 17.11 billion and USD 23.20 billion in 2024. It is expected to reach a projected value between approximately USD 21.25 billion and USD 34.64 billion by 2030 or 2033, with CAGRs ranging from 4.1% to 7.2% from 2025.

Activewear Market

• Global: The global activewear market was estimated to be between USD 320.91 billion and USD 414.17 billion in 2024. This market is projected to reach between approximately USD 605.89 billion and USD 786.6 billion by 2030 to 2034, with CAGRs from 5.0% to 9.0% during the respective forecast periods.
• U.S.: The U.S. activewear market generated between approximately USD 97.41 billion and USD 128.51 billion in 2024. It is expected to grow to a range of approximately USD 158 billion to USD 203.25 billion by 2030 to 2033, with CAGRs ranging from 6.5% to 8.55% from 2025.

Beauty and Personal Care Products Market

• Global: The global beauty and personal care products market was valued between approximately USD 529.5 billion and USD 557.88 billion in 2024. It is projected to grow to a range of approximately USD 776.35 billion to USD 937.13 billion by 2030 to 2033, with CAGRs between 4.2% and 7.7% for the respective forecast periods.
• U.S.: The U.S. beauty and personal care products market was estimated to be between USD 93.27 billion and USD 102.73 billion in 2024. It is anticipated to reach between approximately USD 142.47 billion and USD 155.44 billion by 2030, with CAGRs from 5.1% to 7.37% from 2025.

Expected Drivers of Future Revenue Growth for Victoria's Secret (VSCO)

1. International Expansion: Victoria's Secret has demonstrated strong performance in its international markets, with significant sales growth reported in Q2 and Q3 of fiscal year 2025 (Q2 and Q3 2026 based on reporting schedules). This growth is fueled by global partnerships and increasing brand relevance, indicating that continued expansion and success in international operations will be a key revenue driver.
2. Product Innovation and Differentiation: The company is focused on product innovation and strategic differentiation between its Victoria's Secret and PINK brands. Recent examples include the successful launch of the "Body by Victoria" collection and the new FlexFactor bra, which have driven new customer growth. Future product introductions, such as new sports bras and the Dreamshare Wicked Bra, are anticipated to further drive growth by meeting customer needs and strengthening the brand's competitive edge.
3. Customer Acquisition and Enhanced Engagement: Victoria's Secret aims to deepen connections with existing customers and attract new ones by evolving its brand projection and go-to-market strategy. The company has reported double-digit new customer growth following product launches, highlighting the importance of compelling storytelling and a relevant product offering to expand its customer base and foster loyalty.
4. Growth in Key Product Categories: The beauty business continues to be a standout performer, and sales growth has been observed across core categories like intimates and sports bras. The company is actively innovating within these categories, with new bra launches driving overall bra sales and increasing market share in the intimates segment.

Share Repurchases

• In March 2024, Victoria's Secret & Co. authorized a new share repurchase program for up to $250 million of its common stock.
• A $250 million share repurchase program was approved in January 2023, slated to commence after an existing $250 million program was completed by the end of January 2023.
• The company executed share repurchases of $250 million in fiscal year 2022 and $125 million in fiscal year 2024.

Share Issuance

• Victoria's Secret & Co. became an independent publicly traded company on August 3, 2021, through a distribution of 100% of its common stock to stockholders of its former parent company.
• In fiscal year 2025, there was a net common equity issuance of $5 million.
• In 2024, stockholders approved an amendment to the 2021 Plan, increasing the number of shares available for issuance under the plan for equity compensation by 5 million shares.

Outbound Investments

• On December 30, 2022, Victoria's Secret & Co. completed the acquisition of AdoreMe, Inc., a digitally-native intimates brand.
• In April 2022, the company entered into a joint venture agreement with Regina Miracle International (Holdings) Limited to operate Victoria's Secret stores and the related online business in China, with Victoria's Secret & Co. holding a 51% ownership stake.

Capital Expenditures

• Expected capital expenditures for fiscal year 2025 are approximately $200 million, a reduction from a previous estimate of $220 million.
• Capital expenditures totaled $178 million in fiscal year 2024 and $256 million in fiscal year 2023.
• The primary focus of capital expenditures has been on the store capital program, including refreshing existing stores with a "store of the future" concept, and investing in technology to support strategic growth initiatives.