Here are a few analogies to describe Victoria's Secret:

• Bath & Body Works for women's lingerie and beauty products.

• Lululemon for intimate apparel and beauty.

• Bras: Undergarments designed for breast support and shaping.
• Panties: Undergarments worn on the lower body.
• Lingerie: Lightweight, often decorative, intimate apparel.
• Sleepwear: Clothing specifically designed for sleeping, such as pajamas and nightgowns.
• Loungewear: Comfortable clothing suitable for relaxing at home.
• Athletic Attire and Swimwear: Clothing designed for sports activities and swimming.
• Fragrances: Perfumes, body mists, and other scented products.
• Body Care Products: Lotions, washes, and other items for skin care.
• Accessories: Complementary items such as bags or small decorative pieces.

Victoria's Secret (VSXY) sells primarily to individuals through its extensive network of retail stores and online channels. The company serves the following categories of customers:

• Adult Women: This category encompasses customers who are seeking sophisticated, fashionable, and alluring intimate apparel, sleepwear, loungewear, fragrances, and beauty products. These customers are typically targeted by the core Victoria's Secret brand, valuing style, quality, and often a sense of luxury or sensuality in their purchases.
• Young Adults and College-Aged Women: This category primarily includes customers who are looking for comfortable, trendy, and casual intimate apparel, loungewear, and athletic wear. These individuals are the core demographic for the PINK brand, emphasizing comfort, affordability, and items that align with current youth fashion and lifestyle trends.

Hillary Super, Chief Executive Officer

Hillary Super has served as CEO of Victoria's Secret & Co. since 2023, where she leads the company's strategic growth initiatives and brand revitalization. Prior to her current role, she was CEO and board member of Savage X Fenty. She also served as the Global CEO of Anthropologie Group, successfully leading the turnaround of its women's apparel and accessories business. Her extensive career includes key merchandising and operational leadership positions at prominent retail companies such as Gap, Old Navy, American Eagle Outfitters, and Guess?.

Scott Sekella, Chief Financial and Operating Officer

Scott Sekella assumed the role of Chief Financial and Operating Officer at Victoria's Secret & Co. in August 2025, having initially joined as Chief Financial Officer in January 2025. He is responsible for the company's financial strategy, performance management, and profitability improvements. Before joining Victoria's Secret, Sekella was the Chief Financial Officer of JOANN Inc. from 2022 to 2024. He also held financial leadership roles at Under Armour and Crocs, and previously served as Senior Vice President-Finance & Operations at Freshology, Inc.

Melinda (Mel) McAfee, Chief Legal and Compliance Officer

Melinda McAfee oversees Victoria's Secret & Co.'s human resources and legal affairs, having joined as Chief Legal Officer in May 2021 and adding Chief Human Resources Officer duties in October 2022. She leads governance, employment, privacy, regulatory compliance, and the comprehensive legal strategy for the company. Prior to Victoria's Secret, she was Senior Vice President, General Counsel and Corporate Secretary of EXPRESS, Inc. Her background also includes over a decade as in-house counsel for Abercrombie & Fitch Co. and a partnership at Vorys, Sater, Seymour and Pease, LLP, specializing in Labor & Employment.

Elizabeth Preis, Chief Marketing and Customer Officer

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

Lucrecia Borgonovo, Chief People Officer

Lucrecia Borgonovo serves as the Chief People Officer at Victoria's Secret & Co., leveraging more than 20 years of global experience in talent, leadership, culture, and organizational effectiveness. She previously held the role of Chief Talent and Organizational Effectiveness Officer at Mastercard, where she was responsible for enterprise-wide talent and culture strategies supporting large-scale transformation and growth. Borgonovo also held leadership positions in human resources at Nike and Bristol-Myers Squibb.

Here are the key risks to Victoria's Secret & Co. (VSXY):

1. Financial Health and Debt Coverage: Victoria's Secret faces a major risk due to its debt not being well covered by operating cash flow, with an operating cash flow to total debt ratio of 18%. The company also has a high debt-to-equity ratio of 312.7%. This indicates a potential vulnerability in its financial stability and ability to manage its debt obligations effectively.
2. Brand Repositioning and Consumer Perception: Victoria's Secret is undergoing a significant rebranding effort to embrace inclusivity and move away from its traditional "Angels" image. The key risk lies in whether this rebranding will successfully resonate with a broader customer base without alienating its existing clientele. There is a concern that the shift could be perceived as inauthentic or "inclusivity washing," which could hinder sales growth and market acceptance.
3. Supply Chain Disruptions and Tariffs: The company is exposed to risks related to its global supply chain, including the ability to source materials, produce, and distribute merchandise worldwide. The fashion industry, including Victoria's Secret, is particularly vulnerable to factors like tariffs and retaliatory measures, which have been cited as a primary hurdle in 2026. Fluctuations in freight, product input, and energy costs, as well as geopolitical conflicts, also pose ongoing threats to its supply chain and profitability.

The addressable markets for Victoria's Secret's main products and services are as follows:

Intimate Apparel (Bras, Panties, Lingerie, Sleepwear, Loungewear, Athletic Attire, and Swimwear)

• Global Market: The global intimate apparel market was valued at approximately USD 98.7 billion in 2025 and is projected to grow to USD 163.4 billion by 2034, exhibiting a compound annual growth rate (CAGR) of 5.8% from 2026 to 2034.
• U.S. Market: The U.S. lingerie market size was estimated at USD 17.95 billion in 2025 and is projected to reach USD 31.40 billion by 2033, growing at a CAGR of 7.2% from 2025 to 2033.

Personal Care and Beauty Products (Fragrances and Body Care Products)

• Global Market: The global beauty and personal care products market is estimated at USD 651.42 billion in 2026 and is set to exceed USD 1.16 trillion by 2035, registering over 6.5% CAGR between 2026 and 2035.
• U.S. Market: The U.S. beauty and personal care products market was estimated at USD 117.05 billion in 2026 and is expected to reach USD 196.33 billion by 2033, growing at a CAGR of 7.7% from 2026 to 2033.

Victoria's Secret & Co. (VSXY) is focusing on several key strategies to drive future revenue growth over the next 2-3 years:

1. International Expansion: The company is actively pursuing growth in international markets through both company-owned and partner-operated stores. This expansion targets high-growth markets in the Middle East, India, Latin America, and Asia, with recent plans to open standalone stores in Germany. International revenue has already shown significant growth, with a 44.9% year-over-year increase in Q1 2026. Victoria's Secret also leverages social commerce, as seen with successful livestreaming events in China.
2. Product Innovation and Diversification: A core driver is the acceleration of product innovation, particularly in its bra department, to improve fit, comfort, and introduce new designs such as the Body by Victoria FlexFactor. Beyond lingerie, the company is diversifying its offerings to include beauty, sleepwear, loungewear, and athletic attire, and expanding existing lines with a broader range of sizes and styles to emphasize inclusivity.
3. Enhanced Digital Engagement and E-commerce Capabilities: Victoria's Secret is prioritizing digital growth, with a target of 40% e-commerce penetration by 2026. This involves leveraging AI for personalized customer experiences, integrating technology from its Adore Me acquisition to improve customer acquisition and lifetime value, and implementing smartphone 3D scanning to enhance fit accuracy and reduce returns. Increased app downloads also contribute to digital traffic.
4. Brand Rejuvenation and Refocusing: The company is undergoing a significant brand transformation, repositioning itself around inclusivity, modern womanhood, and creating distinct identities for its Victoria's Secret and PINK brands. A shift away from heavy promotions towards full-price selling, described as a "promo-detox," is building a healthier, brand-led business. The return of a more inclusive Victoria's Secret Fashion Show is also part of this strategy to build brand relevance and trust.
5. Optimizing Retail Footprint: Victoria's Secret is strategically growing and optimizing its retail footprint. This includes opening new stores and converting traditional flagship locations to smaller, off-mall formats that have demonstrated higher sales per square foot. This approach aims to improve unit economics and reduce operating costs.