Victoria’s Secret & Co.’s VSCO international business delivered outstanding performance in the fiscal fourth quarter of 2025, largely fueled by exceptional strength in China, especially through the digital channel. The international business reported net sales growth of 43% year over year to $276 million in the fiscal fourth quarter. These results reinforce China’s ongoing importance as a major driver of the company’s broader international expansion strategy.
The company emphasized that in China, social commerce and live streaming are integral parts of the customer purchase journey, influencing how consumers discover and purchase products. These channels play a vital role in driving strong customer engagement. As a result, they also contribute significantly to higher conversion rates, making them highly effective tools in shaping purchasing decisions.
VSCO has implemented a more integrated global approach to product, marketing and storytelling. The company aligned its merchandising strategy with key strategic pillars to ensure that each market delivers the right product assortment and messaging. It also enhanced its global assortment with exclusive local products, allowing for a faster response to market demand. In addition, a more globally coordinated approach to the fashion show helped create a brand halo effect that extended across international markets.
The company remains optimistic about China’s future role, citing a substantial runway across both digital channels and physical stores. It sees a significant opportunity to further expand its presence and deepen customer engagement through these platforms. In fiscal 2026, the company expects its international business to deliver double-digit growth, driven by expansion in existing markets, entry into new regions and stronger digital and social commerce execution.
The Zacks Rundown for VSCO
Shares of this Zacks Rank #1 (Strong Buy) company have gained 64.4% in the past six months compared with the industry’s growth of 4.9%.
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From a valuation standpoint, VSCO trades at a forward price-to-earnings ratio of 13.87, lower than the industry’s average of 16.01.
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The Zacks Consensus Estimate for VSCO’s current and next fiscal year earnings implies a year-over-year rise of 15.7% and 19.5%, respectively.
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Other Stocks to Consider
Some other top-ranked stocks have been discussed below:
Deckers Outdoors Corporation DECK, together with its subsidiaries, designs, markets, and distributes footwear, apparel, and accessories for casual lifestyle use and high-performance activities in the United States and internationally. At present, Deckers carries a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for DECK’s current fiscal-year sales and earnings indicates growth of 8.9% and 8.5%, respectively, from the year-ago figures. DECK delivered a trailing four-quarter earnings surprise of 36.9%, on average.
Levi Strauss & Co. LEVI designs, markets, and sells apparel and related accessories for men, women, and children in the United States and internationally. At present, LEVI carries a Zacks Rank of 2.
The Zacks Consensus Estimate for LEVI’s current fiscal-year sales and earnings implies growth of 5.2% and 11.9%, respectively, from the year-ago figures. LEVI has delivered a trailing four-quarter earnings surprise of 21.4%, on average.
Tapestry, Inc. TPR provides accessories and lifestyle brand products in North America, Greater China, the rest of Asia, and internationally. At present, TPR flaunts a Zacks Rank of 2.
The Zacks Consensus Estimate for TPR’s current fiscal-year sales and earnings implies growth of 11.2% and 26.5%, respectively, from the year-ago figures. TPR has delivered a trailing four-quarter earnings surprise of 12.8%, on average.
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This article originally published on Zacks Investment Research (zacks.com).