Victoria’s Secret & Co. (NYSE:VSXY) Announces Quarterly Earnings Results

Victoria’s Secret & Co. (NYSE:VSXY) released its quarterly earnings results on Thursday. The company reported $0.95 EPS for the quarter, topping analysts’ consensus estimates of $0.77 by $0.18, Briefing.com reports. The business had revenue of $1.61 billion during the quarter, compared to analysts’ expectations of $1.62 billion. Victoria’s Secret & Co. had a net margin of 5.46% and a return on equity of 43.36%. The company’s quarterly revenue was up 10.4% on a year-over-year basis.

Here are the key takeaways from Victoria’s Secret & Co.’s conference call:

• Q2 results exceeded guidance: Net sales rose 10% to $1.611 billion, comparable sales increased 9%, adjusted operating income grew 125% to $124 million, and adjusted EPS nearly tripled to $0.95.
• Growth was broad-based across Victoria’s Secret, PINK, Beauty, and international markets. The bra category grew in the mid-teens, PINK grew high single digits, and Beauty delivered its 12th consecutive quarter of sales growth.
• Higher regular-price selling and lower promotional activity improved profitability, expanding adjusted gross margin by 320 basis points to 38.8%. Management also cited customer-file growth, stronger acquisition and retention, and rising traffic across channels.
• Management raised fiscal 2026 guidance, forecasting sales of $7.10 billion-$7.18 billion, adjusted operating income of $560 million-$590 million, and adjusted EPS of $4.45-$4.70, while projecting a return to positive operating income in Q3.
• The semiannual sale’s initial demand exceeded expectations, but reduced sale inventory pressured June sales; management also expects transportation costs and increased marketing spending to limit margin expansion in the back half, with Q3 EPS ranging from a $0.09 loss to $0.01 of income.

Victoria’s Secret & Co. Stock Up 2.5%

Shares of Victoria’s Secret & Co. stock opened at $75.48 on Friday. The company’s 50 day moving average price is $85.45 and its 200-day moving average price is $66.75. Victoria’s Secret & Co. has a 52-week low of $25.00 and a 52-week high of $102.46. The stock has a market capitalization of $6.00 billion, a price-to-earnings ratio of 40.58, a P/E/G ratio of 0.50 and a beta of 2.05. The company has a debt-to-equity ratio of 1.17, a quick ratio of 0.41 and a current ratio of 1.26.

Wall Street Analysts Forecast Growth

A number of research firms have recently issued reports on VSXY. Barclays dropped their price objective on shares of Victoria’s Secret & Co. from $108.00 to $106.00 and set an “overweight” rating for the company in a report on Friday. JPMorgan Chase & Co. increased their target price on Victoria’s Secret & Co. from $88.00 to $110.00 and gave the company an “overweight” rating in a research note on Tuesday, July 28th. Telsey Advisory Group lifted their price target on Victoria’s Secret & Co. from $90.00 to $100.00 and gave the stock an “outperform” rating in a research note on Wednesday. Wells Fargo & Company upped their price objective on Victoria’s Secret & Co. from $57.00 to $90.00 and gave the stock an “overweight” rating in a report on Wednesday, June 3rd. Finally, Weiss Ratings upgraded Victoria’s Secret & Co. from a “hold (c-)” rating to a “hold (c)” rating in a research report on Wednesday, June 24th. One equities research analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating and six have given a Hold rating to the company’s stock. According to data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus price target of $89.90.

Key Victoria’s Secret & Co. News

Here are the key news stories impacting Victoria’s Secret & Co. this week:

• Positive Sentiment: Second-quarter adjusted earnings were $0.95 per share, well above analyst estimates of approximately $0.77-$0.78 and up from $0.33 a year earlier. Revenue increased 10.4% year over year to $1.61 billion. Victoria’s Secret & Co. Reports Second Quarter 2026 Results
• Positive Sentiment: Management raised its fiscal 2026 outlook, projecting net sales of $7.10 billion-$7.18 billion and adjusted EPS of $4.45-$4.70. Third-quarter revenue guidance of roughly $1.6 billion is broadly in line with consensus. Victoria’s Secret forecasts fiscal 2026 sales and earnings
• Positive Sentiment: Barclays maintained an overweight rating and lowered its price target only modestly, from $108 to $106, leaving substantial implied upside based on the referenced price. Retail investors and some analysts view the recent selloff as a potential entry point.
• Neutral Sentiment: UBS reduced its price target from $95 to $87 and assigned a neutral rating. Although the revised target remains above the stock’s referenced price, the cut signals more cautious expectations for the company’s near-term performance.
• Negative Sentiment: Revenue of $1.61 billion missed the approximately $1.62 billion consensus estimate. Investors focused on the topline miss and signs that sales growth is moderating, prompting a sharp decline in the prior session despite the earnings beat. Victoria’s Secret retreats after revenue miss

Insider Buying and Selling

In related news, major shareholder International Pte Ltd Bbrc sold 798,920 shares of the stock in a transaction dated Tuesday, July 28th. The shares were sold at an average price of $89.15, for a total value of $71,223,718.00. Following the completion of the transaction, the insider directly owned 7,810,631 shares of the company’s stock, valued at $696,317,753.65. This represents a 9.28% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. In the last three months, insiders have sold 1,364,570 shares of company stock valued at $121,396,640. 0.52% of the stock is currently owned by corporate insiders.

Institutional Trading of Victoria’s Secret & Co.

Several hedge funds and other institutional investors have recently made changes to their positions in VSXY. DV Equities LLC bought a new position in Victoria’s Secret & Co. during the 4th quarter valued at approximately $49,000. Quantbot Technologies LP purchased a new stake in shares of Victoria’s Secret & Co. in the third quarter worth $53,000. Kestra Advisory Services LLC bought a new position in shares of Victoria’s Secret & Co. during the fourth quarter valued at $78,000. Smartleaf Asset Management LLC increased its holdings in shares of Victoria’s Secret & Co. by 11.5% during the fourth quarter. Smartleaf Asset Management LLC now owns 1,935 shares of the company’s stock valued at $106,000 after acquiring an additional 199 shares in the last quarter. Finally, Lazard Asset Management LLC raised its position in shares of Victoria’s Secret & Co. by 7.7% in the 2nd quarter. Lazard Asset Management LLC now owns 7,258 shares of the company’s stock worth $133,000 after purchasing an additional 521 shares during the last quarter. Hedge funds and other institutional investors own 90.29% of the company’s stock.

Victoria’s Secret & Co. Company Profile

Victoria’s Secret & Co is a leading designer, manufacturer and marketer of intimate apparel, beauty products and accessories for women. The company operates a portfolio of brands that includes Victoria’s Secret, renowned for its lingerie, bras and sleepwear; PINK, a line targeting younger consumers with activewear and lifestyle products; and Victoria’s Secret Beauty, offering fragrances, cosmetics and personal care items. Products are sold through retail stores as well as direct-to-consumer channels, including e-commerce platforms and mobile applications.

The origins of Victoria’s Secret date back to 1977, when founders Roy and Gaye Raymond opened the first store in San Francisco.