Victoria's Secret & Co. expects its annual sales to exceed $7 billion [1, 2] for the 2026 fiscal year.
This projection indicates a potential recovery for the brand as it attempts to stabilize its customer base and improve profit margins. The shift suggests the company is successfully moving away from a reliance on deep discounts to attract shoppers.
The retailer said the growth is driven by a return of customers and an increase in market share [1, 2]. This turnaround follows a "promotional detox," a strategic effort to reduce the frequency of sales and discounts. By limiting these offers, the company shifted its sales mix toward full-price items [1, 2].
Management said that this approach has strengthened the brand's value proposition. The company is focusing on regaining its footing in a competitive apparel market where consumer preferences have shifted toward inclusivity and comfort.
While the company has faced volatility in previous years, the current forecast reflects a more optimistic outlook on consumer demand. The focus on full-price sales is intended to protect the brand's prestige while ensuring a steady stream of revenue [1, 2].
“Victoria's Secret & Co. expects its annual sales to exceed $7 billion”
The move toward a 'promotional detox' represents a critical pivot from volume-based growth to margin-based growth. By reducing discounts, Victoria's Secret is testing whether its brand equity is strong enough to sustain high price points in a market now crowded by diverse competitors. If the $7 billion target is met, it will signal that the company has successfully transitioned its business model to prioritize brand loyalty over temporary price incentives.
