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Victoria’s Secret is planning to cut back on deals to offset higher costs from tariffs.
Shoppers at the lingerie chain might be familiar with its frequent discounts or the free gifts that it gives customers who spend a certain amount in one visit.
President Donald Trump’s tariffs are expected to hit Victoria’s Secret’s operating income by $50 million during its 2025 fiscal year, though, the company said as it reported earnings on Wednesday. Discounts and freebies are among the first areas the company could cut back on to minimize the cost of tariffs.
“The thing we’re doing, first and foremost, is optimizing our promos,” CFO Scott Sekella said during the company’s earnings call on Wednesday when asked by an analyst about whether the company plans to increase prices as a result of tariffs.
Sekella said customers will likely see “more headwinds” on gift-with-purchase deals at Victoria’s Secret stores during the next several months. The company will also pull back on more traditional discounts.
Sekella said that Victoria’s Secret would take a “strategic, case-by-case” approach to raising prices overall in response to the tariffs.
“It won’t be across all categories,” he said.
Companies are taking various measures to offset the tariffs, from raising prices to finding new suppliers that are less affected by the duties.
Trump has paused many of the highest tariffs on consumer goods until July. However, importers still have to pay a 30% tariff on imports from China and 10% on many goods brought in from other countries.
Victoria’s Secret chose to write off some raw materials from China during its first quarter due to the tariffs, Sekella said.
Besides fewer promotions, the retailer is also looking to minimize its hit from tariffs by finding new sources and negotiating with existing suppliers, he said during the call.
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