Victoria’s Secret & Company VSXY continues to identify China as its #1 growth area within international markets, although the company expects international growth to moderate somewhat in the second half. International net sales increased 20% year over year in the second quarter of fiscal 2026, with retail comparable sales up in the low teens. China led the growth, with strong performance across both digital and stores.
The company specifically stated that China remains its #1 growth area within international markets, with management remaining highly encouraged by its performance. Growth continues to be led by the digital channel, which is heavily supported by social selling, while retail comparable sales have also accelerated. Management is particularly pleased with the performance of its stores in China heading into the back half of the year, as the company is now lapping the accelerated growth that began around last year’s 618 event. The company continues to feel strong about the market.
The moderation in international growth was largely related to lower merchandise sourcing sales to franchise partners, reflecting order and shipment timing. Management described these franchise-partner sales as low-margin and said that the shift was the biggest drag on the international growth deceleration. At the same time, management remained encouraged by China’s performance. China’s accelerated growth began around last year’s 618 shopping event, and the company has now lapped that acceleration.
Overall, Victoria’s Secret’s confidence in China provides a constructive foundation for its international growth outlook. With the market continuing to develop across both digital and physical channels, the company has an opportunity to build on its progress and further expand its presence in China. If the current momentum is sustained, China could play an increasingly important role in supporting Victoria’s Secret’s international growth over the coming years.
The Zacks Rundown for VSXY
Shares of this Zacks Rank #3 (Hold) company have gained 90.1% in the past six months against the industry’s decline of 6.9%.
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From a valuation standpoint, VSXY trades at a forward price-to-earnings ratio of 16.95, higher than the industry’s average of 12.45.
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The Zacks Consensus Estimate for VSXY’s current and next fiscal year earnings implies a year-over-year rise of 56.3% and 22.7%, respectively.
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Stocks to Consider
Some better-ranked stocks have been discussed below:
FIGS, Inc. FIGS operates as a direct-to-consumer healthcare apparel and lifestyle company in the United States and internationally. At present, FIGS carries a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for FIGS’s current fiscal-year sales and earnings implies growth of 19.8% and 89.5%, respectively, from the year-ago figures. FIGS has delivered a trailing four-quarter earnings surprise of 201.8%, on average.
Fossil Group, Inc. FOSL designs, develops, markets, and distributes consumer fashion accessories in the United States, Europe, Asia, and internationally. At present, FOSL carries a Zacks Rank of 2.
The Zacks Consensus Estimate for FOSL’s current fiscal-year sales indicates a decline of 4%, while the same for earnings indicates growth of 96.7% from the year-ago figures. FOSL delivered a trailing four-quarter negative earnings surprise of 236.2%, on average.
Boot Barn Holdings, Inc. BOOT operates specialty retail stores in the United States and internationally. At present, Boot Barn carries a Zacks Rank of 2.
The consensus estimate for Boot Barn’s current fiscal-year sales and earnings implies growth of 15.8% and 23.5%, respectively, from the year-ago figures. BOOT delivered a trailing four-quarter earnings surprise of 11.4%, on average.
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Victoria's Secret & Co. (VSXY): Free Stock Analysis Report
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