Key Highlights
- Q4 earnings per share reached $2.77, surpassing analyst expectations of $2.52
- Quarterly revenue climbed 8% year-over-year, reaching $2.27 billion
- The company achieved three consecutive quarters of positive comparable sales growth — a first in four years
- Annual revenue forecast of $6.85B–$6.95B exceeded Wall Street’s $6.8B projection
- Shares fell more than 6% during premarket hours despite positive financial performance
The intimate apparel retailer delivered impressive fourth-quarter results that exceeded analyst projections across key metrics. However, market sentiment proved negative, with shares declining over 6% in Thursday’s premarket session.
The company reported adjusted earnings per share of $2.77, comfortably beating the Street’s $2.52 consensus. Quarterly revenue reached $2.27 billion, representing an 8% increase from the prior year’s $2.11 billion and exceeding expectations of $2.23 billion.
For the quarter, net income totaled $183.63 million, translating to $2.14 per diluted share. This compares with net income of $193.4 million, or $2.33 per share, during the corresponding period last year.
The reporting period concluded on January 31. Comparable sales surged 8%, significantly outpacing the 5.6% growth analysts had projected, according to StreetAccount data.
This performance represents the third straight quarter of positive comparable sales momentum — the company’s longest growth streak in a minimum of four years, based on FactSet records.
CEO Hillary Super, who assumed leadership approximately 18 months ago, has been orchestrating a comprehensive transformation centered on merchandise quality, promotional strategies, and brand positioning. Her approach emphasizes the Pink collection, the beauty segment, and reestablishing dominance in intimate apparel.
“Our customer responded enthusiastically to our product and marketing, as demonstrated by growing new customer acquisition and increased average unit retails,” Super said in a statement.
Forward Outlook Exceeds Projections
For the first quarter, management anticipates revenue between $1.49 billion and $1.53 billion, surpassing Wall Street’s $1.42 billion estimate.
The full-year revenue outlook ranges from $6.85 billion to $6.95 billion, above the consensus forecast of $6.8 billion.
Operating income is forecast between $430 million and $460 million, compared with analyst expectations of $421 million.
The projections assume tariff rates remain unchanged — issued before the Supreme Court invalidated multiple Trump administration trade levies. Tariff impacts reduced adjusted operating income by approximately $85 million throughout fiscal 2025.
DailyLook’s Future Uncertain
The retailer announced it has initiated a strategic assessment of DailyLook, a fashion styling platform acquired through the 2022 Adore Me transaction.
The company described DailyLook as a “non-core asset.” Strategic reviews of this kind often lead to a sale.
Additionally, the company recorded $119.6 million in impairment charges associated with Adore Me assets during the reporting period.
Management noted that fiscal 2026 launched with robust Valentine’s Day sales, with positive trends persisting into the current period.
VSCO shares have appreciated 11% year-to-date and approximately 194% over the trailing twelve months prior to Thursday’s trading session.
