Victoria's Secret & Co at Goldman Global Retailing Conference Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Brooke Roach - Goldman Sachs Group Inc - Analyst : (video playing) Great. Well, with that, Hillary, you're about to reach your first year milestone in about a week as CEO of the company. Stepping back, what are the most important changes that you've implemented so far to the business and what do you see as the biggest opportunities ahead?

Question: Brooke Roach - Goldman Sachs Group Inc - Analyst : That's a great introduction. Let's dive into each of those, starting with supercharging your authority in Bra. There's a lot of different pieces to this, whether that's the new Flex Factor launch, whether that's the Sport bra initiative. How should we be thinking about what might be changing in your bra business go-to-market into 2026? How does your strategy with sport and swim fit into this? And what do you think is a sustainable growth rate for the bras business as you look ahead?

Question: Brooke Roach - Goldman Sachs Group Inc - Analyst : Very clear. Let's pivot to the second strategy, which is Recommitting to PINK. What is it about the PINK business and the opportunity that you see that excites you the most? And what changes should we expect this holiday season versus what might be longer dated? From an adjustment perspective.

Question: Brooke Roach - Goldman Sachs Group Inc - Analyst : Very clear. You recently had a very exciting collaboration with Love Shack fancy for the PINK brand. And you talked about some new customer acquisition that you're getting. How are you thinking about the new customers that you're acquiring today, either through your core or through collaboration and launches? What's the demographic? And how do you keep and reengage with those customers?

Question: Brooke Roach - Goldman Sachs Group Inc - Analyst : Very clear. Let's shift to Beauty, where you have been demonstrating very strong growth. What about your Beauty business is working so well? And how does Beauty fit into the overall strategy? What does the opportunity look like?

Question: Brooke Roach - Goldman Sachs Group Inc - Analyst : Very clear. Your final strategy is in evolving your brand projection and go-to-market strategy. And recently, you brought on a new Chief Marketing and Customer Officer. And you've just talked -- now talked about differentiating the VS and PINK brands. As you think about that in the context of your fashion to coming up on October 15, how should we be thinking about your vision for each of these brands who is the target customer and what changes might we expect to see? And is there anything exciting that you can preview for us about a fashion show. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 04, 2025 / 5:10PM, VSCO.N - Victoria's Secret & Co at Goldman Global Retailing Conference

Question: Brooke Roach - Goldman Sachs Group Inc - Analyst : Very clear. Scott, let's turn to you and talk about the store base and the Store of the Future. What changes to the store base do you expect as you execute the path to potential strategy? And how does the Store of Future concept fit into this opportunity?

Question: Brooke Roach - Goldman Sachs Group Inc - Analyst : As a follow-up, is there anything else you can add regarding other potential uses of free cash flow and how you're thinking about capital allocation?

Question: Brooke Roach - Goldman Sachs Group Inc - Analyst : Very clear. Hillary, let's switch back to you. As you look at the competitive backdrop and the consumer today, how would you describe your positioning? And how are you viewing the current health of the consumer?

Question: Brooke Roach - Goldman Sachs Group Inc - Analyst : That's really great to hear. Let's shift to your international business. Scott, you mentioned this earlier. Victoria's Secret has seen very strong international growth in recent years. Where is the largest opportunity ahead for continued international growth? Yes, okay.

Question: Brooke Roach - Goldman Sachs Group Inc - Analyst : Very clear. Let's turn to Scott and talk about one of the biggest topics of the year, which is tariffs. You recently updated your assumptions for that impact to tariffs on your latest call, how should we be thinking about the time line to fully mitigate these headwinds? And what proportion of the offset will be driven by pricing versus other mitigating factors to the extent that you've taken any price, are you seeing any elasticity?

Question: Brooke Roach - Goldman Sachs Group Inc - Analyst : Is there any contextualization that you can give to us about the magnitude of the benefit from promotion reduction and what that might mean into next year? I know you mentioned it could continue to be a benefit, but --

Question: Brooke Roach - Goldman Sachs Group Inc - Analyst : Very clear. Hilary, you've talked about needing a more differentiated and agile production cycle and calendar, and you've recently talked about the PINK and LoveShackFancy club, which we talked about earlier, and how that was executed on a new 26 week production calendar. Can you talk about what you're doing to evolve the production cycle today?

Question: Brooke Roach - Goldman Sachs Group Inc - Analyst : And Scott, as you think about some of those things that are happening in the business, can you discuss your expectations for inventory growth into the back half? Do you expect any disruption or change in the timing as a result of what's happening in the environment?

Question: Brooke Roach - Goldman Sachs Group Inc - Analyst : Maybe sticking with you, as we put this all together, how are you thinking about the path to return to Victoria's Secret's historical margin levels? What's possible in the current environment? And what are the drivers that will deliver the improvement?

Question: Brooke Roach - Goldman Sachs Group Inc - Analyst : Very clear. And then as you think about the SG&A efficiencies, just discussed a lot of different options. But as we drill a little bit deeper into SG&A, how much more optionality is there on that line item? And then how should we be thinking about the leverage point? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 04, 2025 / 5:10PM, VSCO.N - Victoria's Secret & Co at Goldman Global Retailing Conference

Question: Brooke Roach - Goldman Sachs Group Inc - Analyst : Very clear. Hillary, earlier in the session, you noted that you're looking to bring the company into a new era of Sexy, particularly for the Victoria's Secret brand. As you think about what that represents to the consumer and this evolving idea of sexiness, how are you translating that understanding into brand expression and consumer engagement?

Question: Brooke Roach - Goldman Sachs Group Inc - Analyst : That's really great to hear. We're about out of time. Hillary, any closing comments or thoughts that you'd like to leave with the audience?

Question: Brooke Roach - Goldman Sachs Group Inc - Analyst : Okay. Well, thank you so much, Hilary. Thank you, Scott, and thanks for everyone in the audience for tuning in.