Overview
- Q4 results beat expectations with net sales of $2.27 billion, comparable sales up 8%, and adjusted earnings per share of $2.77.
- For fiscal 2026, the company forecasts sales of $6.85 billion to $6.95 billion and EPS of $3.20 to $3.45, with Q1 sales guided to $1.49 billion to $1.53 billion; the outlook assumes current tariffs as management works to trim gross tariff costs to roughly a $40 million net impact from about $160 million.
- Comparable sales have risen for three consecutive quarters, the longest growth streak in at least four years, according to FactSet.
- Management credits its Path to Potential plan—reasserting bra leadership, resetting PINK, and expanding beauty and digital—with app adoption now driving about one‑third of digital sales and Q4 international revenue up 43% led by China.
- The quarter included $119.6 million in impairments tied to Adore Me, and the company launched a strategic review of DailyLook, a non‑core styling service acquired in 2022, while continuing to evaluate Adore Me’s role in the portfolio.