Victoria’s Secret & Co. (NYSE:VSCO) Shares Gap Down – Time to Sell?

Victoria’s Secret & Co. (NYSE:VSCO)’s stock price gapped down prior to trading on Thursday . The stock had previously closed at $60.01, but opened at $56.40. Victoria’s Secret & Co. shares last traded at $51.65, with a volume of 3,562,104 shares traded.

Key Stories Impacting Victoria’s Secret & Co.

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

• Positive Sentiment: Q4 results beat consensus: VSCO reported adjusted EPS of $2.77 and revenue of $2.27B, topping estimates and showing an 8% comparable-sales increase for the quarter — management highlighted broad-based strength across brands and channels. Victoria’s Secret & Co. Reports 2025 Fourth Quarter and Full-Year Results
• Positive Sentiment: Raised guidance materially above Street: FY‑2026 EPS guidance was set at $3.20–$3.45 (vs. consensus ~$2.82) and revenue guidance near $6.9–$7.0B, while Q1 EPS was guided to $0.20–$0.30 (well above prior expectations) — a clear signal management expects the turnaround to continue. Victoria’s Secret tops holiday quarter earning estimates
• Positive Sentiment: Analysts and media highlight momentum: Coverage notes the best streak of comparable-sales growth in four years and CEO comments that the strategy (including strength in the Pink brand) is working — this supports upside to consensus if execution continues. Victoria’s Secret Sales Rise; CEO Says Strategy is Paying Off
• Neutral Sentiment: Street reactions include fresh bullish research: Barclays (and other outlets) have put a positive thesis on VSCO given accelerating sales and margin leverage, which could underpin further price appreciation if guidance is met. Barclays Forecasts Strong Price Appreciation for Victoria’s Secret & Co. (NYSE:VSCO) Stock
• Negative Sentiment: Financial-profile and valuation risks: although results beat, net margin remains modest and the company carries leverage (debt-to-equity and liquidity metrics noted by coverage), leaving room for investor concern if execution slips — this may explain profit-taking despite the beat. Victoria’s Secret Q4 earnings and transcript

Analyst Upgrades and Downgrades

Several brokerages have commented on VSCO. Morgan Stanley upgraded shares of Victoria’s Secret & Co. from an “equal weight” rating to an “overweight” rating and set a $60.00 price objective for the company in a research note on Friday, December 5th. Wells Fargo & Company set a $45.00 target price on shares of Victoria’s Secret & Co. and gave the company an “equal weight” rating in a research report on Tuesday, December 16th. Telsey Advisory Group upped their price target on shares of Victoria’s Secret & Co. from $66.00 to $71.00 and gave the company an “outperform” rating in a report on Monday. Weiss Ratings upgraded Victoria’s Secret & Co. from a “sell (d+)” rating to a “hold (c-)” rating in a research note on Friday, February 6th. Finally, TD Cowen restated a “hold” rating on shares of Victoria’s Secret & Co. in a research note on Monday, December 8th. Seven equities research analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, the company has an average rating of “Moderate Buy” and an average price target of $59.00.

Victoria’s Secret & Co. Stock Down 14.2%

The company has a debt-to-equity ratio of 1.96, a current ratio of 1.30 and a quick ratio of 0.38. The business’s fifty day simple moving average is $59.56 and its two-hundred day simple moving average is $42.89. The company has a market cap of $4.13 billion, a PE ratio of 25.12, a PEG ratio of 2.29 and a beta of 2.19.

Victoria’s Secret & Co. (NYSE:VSCO) last posted its earnings results on Thursday, March 5th. The company reported $2.77 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.46 by $0.31. Victoria’s Secret & Co. had a net margin of 2.67% and a return on equity of 33.47%. The business had revenue of $2.27 billion for the quarter, compared to analyst estimates of $2.22 billion. During the same period in the prior year, the company posted $2.60 EPS. The company’s revenue for the quarter was up 7.8% on a year-over-year basis. Victoria’s Secret & Co. has set its Q1 2026 guidance at 0.200-0.300 EPS and its FY 2026 guidance at 3.200-3.450 EPS. On average, analysts predict that Victoria’s Secret & Co. will post 2.37 earnings per share for the current year.

Institutional Trading of Victoria’s Secret & Co.

A number of institutional investors and hedge funds have recently made changes to their positions in the business. Corient Private Wealth LLC lifted its position in shares of Victoria’s Secret & Co. by 29.6% during the 4th quarter. Corient Private Wealth LLC now owns 20,272 shares of the company’s stock valued at $1,098,000 after buying an additional 4,629 shares in the last quarter. Mercer Global Advisors Inc. ADV acquired a new position in Victoria’s Secret & Co. during the fourth quarter worth $656,000. Summit Global Investments acquired a new position in Victoria’s Secret & Co. during the fourth quarter worth $408,000. State of Tennessee Department of Treasury lifted its holdings in Victoria’s Secret & Co. by 5.4% during the fourth quarter. State of Tennessee Department of Treasury now owns 34,493 shares of the company’s stock valued at $1,880,000 after purchasing an additional 1,771 shares in the last quarter. Finally, Mackenzie Financial Corp acquired a new stake in shares of Victoria’s Secret & Co. in the fourth quarter valued at about $237,000. 90.29% of the stock is currently owned by hedge funds and other institutional investors.

About Victoria’s Secret & Co.

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.