1、Barclays Capital Inc.and/or one of its affiliates does and seeks to do business with companiescovered in its research reports.As a result,investors should be aware that the firm may have aconflict of interest that could affect the objectivity of this report.Investors should consider thisreport as on

2、ly a single factor in making their investment decision.Please see analyst certifications and important disclosures beginning on page 18.Victorias Secret&Co.2Q25 Review:Brand InitiativesBegin to Show ProgressVSCO reported 2Q25 results that beat on Sales,GM,OM,andEPS.However,the beat did not flow thro

3、ugh to the full yearas its FY25 EPS guide was reiterated for$1.80-$2.20,asVSCOraised its expected tariff impact on op inc to$100mn from$50mn for FY25,despite mitigation strategies.Brand Initiatives Begin to Show Progress;Tariff Pressure Weighs on Margins.VSCO reported2Q25 results that beat on Sales,

4、GM,OM,and EPS.The beat did not flow through to the full yearas its FY25 EPS guide was reiterated for$1.80-$2.20,as VSCO raised its expected net tariff impacton op inc to$100mn from$50mn for FY25,despite mitigation strategies.VSCOs 2Q25 resultsshowed execution on its multi-year brand recovery,with pr

5、ogress across key initiativesincluding:1)recommit to PINK;2)supercharge bras;3)grow its lifestyle categories;and 4)modernize its brand and go-to-market strategy.VSCO demonstrated strong momentum duringthe quarter with net sales growing+3%Y/Y with comp sales+4%as it saw broad-based growthat both VS a

6、nd PINK,with its international business growing+22%.Promo discipline remained afocus,as VSCOs GM was up+20bps y/y as the company continues to focus on driving regular-price selling and pulling back on markdowns.However,incremental tariff pressure in 2H25,which is expected to hit 3Q25 op inc by$20mn