Victoria's Secret & Company VSXY noted that Beauty delivered strong performance in the first quarter of fiscal 2026, with the business accelerating to low double-digit growth. The performance was supported by continued strength in fine fragrance and the mist collection, which remained key contributors to the category's growth. The acceleration points to improving momentum in Beauty, with fine fragrance and mist continuing to support the category's performance. The first-quarter results provided encouraging evidence of continued strength and growth across the Beauty business.
The performance was supported by increased product newness, integrated brand campaigns and targeted marketing around key selling moments. A consistent flow of new products is helping strengthen customer connection and relevance. In March, the company introduced Bombshell Bouquet, a spring extension of a top-selling franchise, as part of its Mother's Day gifting offering. The company amplified the launch through integrated brand campaigns that helped drive engagement, brand heat and higher regular-price selling.
The company is strengthening Beauty through integrated cross-category marketing, deeper customer insights and targeted execution around key selling moments. Its Angel Reese campaign brought intimates and fragrance together into a unified brand story, while Bombshell Bronze became the top fine fragrance at launch. The company is also using deeper customer-journey insights to determine the right products, messages and touchpoints for Beauty shoppers.
Overall, Beauty is becoming an increasingly important growth driver for Victoria's Secret, as stronger brand integration, product newness and cross-category storytelling deepen customer engagement and support continued growth in the Beauty business.
Shares of this Zacks Rank #1 (Strong Buy) company have gained 55.8% in the past three months against the industry's decline of 8.4%.
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From a valuation standpoint, VSXY trades at a forward price-to-earnings ratio of 16.39, higher than the industry's average of 13.20.
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The Zacks Consensus Estimate for VSXY's current and next fiscal year earnings implies a year-over-year rise of 56.7% and 23.4%, respectively.
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