Victoria’s Secret Reports Strong Q1 2025 Results Despite Major Cybersecurity Incident

Victoria’s Secret & Co. (NYSE: VSCO), a global leader in lingerie and lifestyle retail, has announced preliminary financial results for the first quarter of 2025—exceeding previous guidance despite a significant cybersecurity breach that temporarily disrupted operations.

Cyberattack Disrupts Corporate Systems and Website

On May 24, 2025, Victoria’s Secret detected unauthorized access to its IT systems. In response, the company immediately activated its security protocols, brought in third-party cybersecurity experts, and began containment efforts. As a precaution, the company shut down its corporate systems and e-commerce platform on May 26, 2025.

While most store functions were quickly restored, the online store only resumed operations on May 29. Restoration of full access to internal systems remains ongoing, with limited employee access to certain corporate data still affecting operations.

Despite the breach, the company emphasized that its Q1 financial performance was not materially impacted. However, it acknowledged that costs related to remediation and potential follow-up measures could affect results in the upcoming quarters.

Record-Beating Preliminary Q1 Results

Victoria’s Secret reported that preliminary results for the first fiscal quarter ended May 3, 2025, were above the high end of previously issued guidance. Net sales reached $1.35 billion, outperforming the projected range of $1.30 billion to $1.33 billion.

Adjusted operating income came in at $32 million—surpassing the previous forecast of $10 million to $30 million. Adjusted earnings per diluted share stood at $0.09, well above earlier estimates that ranged from a $0.10 loss to a $0.10 gain.

These figures reflect the company’s operational strength and effective cost controls, even under the shadow of a cyber crisis. However, the disruption did force a delay in the official earnings release and investor call, both of which will be rescheduled at a later date.

Financial Details: GAAP vs Non-GAAP

The company also shared non-GAAP metrics for better clarity. GAAP net loss per diluted share for Q1 was ($0.02), which includes $6 million in intangible asset amortization and $6 million in restructuring and one-time charges related to leadership restructuring. Once adjusted, net income per share rose to $0.09.

Similarly, adjusted operating income of $32 million includes add-backs for these charges, showing a more accurate picture of the company’s ongoing operations.

About Victoria’s Secret & Co.

Victoria’s Secret & Co. is a specialty retailer with a global presence of approximately 1,380 stores in nearly 70 countries. The company’s core brands—Victoria’s Secret, PINK, and Adore Me—focus on empowering women through high-quality products including lingerie, sleepwear, swimwear, fragrance, and body care.

VS&Co employs over 30,000 associates and has positioned itself as a hybrid of physical and digital retail innovation. Adore Me, in particular, has allowed the company to strengthen its digital-first approach with inclusive offerings for all sizes and budgets.

Business Continuity Amid IT Crisis

The security incident, although disruptive, has so far not led to material operational damage. Nevertheless, the company warned of potential financial impacts in the second quarter as it continues to assess the extent of the breach and fortify its systems.

Oversight of the incident is being managed by the Audit Committee of the Board of Directors, and the company reaffirmed its commitment to data security and resilience.

Forward Outlook and Risk Factors

In a forward-looking statement, Victoria’s Secret noted that while Q1 results were encouraging, ongoing risks include cybersecurity threats, supply chain disruptions, inflation, labor costs, and consumer sentiment volatility.

The company remains committed to executing its strategic plans, including further international expansion, growing its direct-to-consumer business, and improving digital capabilities—especially in light of rising threats to IT infrastructure.

Conclusion

Victoria’s Secret & Co. demonstrated notable resilience in Q1 2025, delivering results that exceeded market expectations even while navigating a complex cybersecurity event. The company’s strong sales performance and effective crisis response reflect sound management and operational agility. As the brand works to rebuild and strengthen its digital systems, investors and analysts will continue monitoring both short-term financial impacts and long-term growth potential.