Victoria’s Secret & Co. (NYSE:VSXY) Posts Earnings Results, Beats Expectations By $0.18 EPS

Victoria’s Secret & Co. (NYSE:VSXY) announced its quarterly earnings data on Thursday. The company reported $0.95 EPS for the quarter, topping analysts’ consensus estimates of $0.77 by $0.18, Briefing.com reports. Victoria’s Secret & Co. had a net margin of 3.11% and a return on equity of 38.03%. The firm’s quarterly revenue was up 10.4% compared to the same quarter last year.

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 Down 12.6%

Shares of VSXY opened at $74.09 on Friday. The firm has a market cap of $5.88 billion, a P/E ratio of 39.83, a price-to-earnings-growth ratio of 0.58 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. Victoria’s Secret & Co. has a 52 week low of $23.15 and a 52 week high of $102.46. The firm’s 50-day simple moving average is $85.69 and its 200 day simple moving average is $66.69.

Insider Transactions at Victoria’s Secret & Co.

In other Victoria’s Secret & Co. news, major shareholder International Pte Ltd Bbrc sold 798,920 shares of the firm’s stock in a transaction that occurred on Tuesday, July 28th. The shares were sold at an average price of $89.15, for a total transaction of $71,223,718.00. Following the completion of the sale, the insider directly owned 7,810,631 shares in the company, valued at $696,317,753.65. This trade represents a 9.28% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Insiders have sold 1,364,570 shares of company stock worth $121,396,640 in the last three months. Company insiders own 0.52% of the company’s stock.

Hedge Funds Weigh In On Victoria’s Secret & Co.

A number of large investors have recently made changes to their positions in the company. Fuller & Thaler Asset Management Inc. bought a new stake in Victoria’s Secret & Co. in the 4th quarter valued at $87,786,000. Marshall Wace LLP increased its position in Victoria’s Secret & Co. by 301.4% during the 4th quarter. Marshall Wace LLP now owns 1,792,727 shares of the company’s stock worth $97,112,000 after buying an additional 1,346,104 shares during the period. Price T Rowe Associates Inc. MD increased its position in Victoria’s Secret & Co. by 1,454.1% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 1,045,465 shares of the company’s stock worth $56,634,000 after buying an additional 978,194 shares during the period. Balyasny Asset Management L.P. acquired a new stake in shares of Victoria’s Secret & Co. during the third quarter worth $20,870,000. Finally, Bridgeway Capital Management LLC acquired a new stake in shares of Victoria’s Secret & Co. during the third quarter worth $17,644,000. Institutional investors own 90.29% of the company’s stock.

Key Headlines Impacting Victoria’s Secret & Co.

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

• Positive Sentiment: Second-quarter adjusted earnings were $0.95 per share, exceeding analyst expectations of approximately $0.76–$0.78 and rising from $0.33 a year earlier. Revenue increased 10.4% year over year to $1.61 billion, while net income also improved. Victoria’s Secret & Co. Reports Second Quarter 2026 Results
• Positive Sentiment: Management raised its fiscal 2026 outlook to projected net sales of $7.10 billion–$7.18 billion and adjusted EPS of $4.45–$4.70, supporting the company’s profitability narrative. Victoria’s Secret Forecasts Fiscal 2026 Outlook
• Positive Sentiment: Telsey Advisory Group raised its price target from $90 to $100 and maintained an “outperform” rating, indicating some analysts see substantial upside after the selloff.
• Neutral Sentiment: Chief Executive Officer Martin Waters said the company is “not done,” while retail-focused investors continued to describe the decline as a buying opportunity. However, this support has not offset broader concerns about the results. VSXY Slides Toward Worst Week Since March
• Negative Sentiment: Quarterly revenue of $1.61 billion missed the roughly $1.62 billion consensus estimate. Investors appear to be treating the sales shortfall and decelerating growth as more important than the EPS beat, sending the stock toward its weakest week since March. Victoria’s Secret Retreats After Revenue Miss
• Negative Sentiment: Management’s third-quarter revenue outlook of approximately $1.6 billion was broadly in line with estimates rather than signaling a meaningful acceleration, reinforcing concerns about the pace of future sales growth.

Wall Street Analysts Forecast Growth

A number of research firms recently issued reports on VSXY. Weiss Ratings raised Victoria’s Secret & Co. from a “hold (c-)” rating to a “hold (c)” rating in a research report on Wednesday, June 24th. Morgan Stanley restated an “overweight” rating and issued a $99.00 price target on shares of Victoria’s Secret & Co. in a research note on Monday, July 6th. The Goldman Sachs Group boosted their price target on Victoria’s Secret & Co. from $56.00 to $84.00 and gave the stock a “neutral” rating in a research report on Wednesday, June 3rd. TD Cowen upped their price objective on Victoria’s Secret & Co. from $75.00 to $80.00 and gave the stock a “hold” rating in a research note on Tuesday, August 18th. Finally, Telsey Advisory Group raised their target price on shares of Victoria’s Secret & Co. from $90.00 to $100.00 and gave the company an “outperform” rating in a research note on Wednesday. One investment analyst has rated the stock with a Strong Buy rating, six have given a Buy rating and six have issued a Hold rating to the stock. Based on data from MarketBeat.com, Victoria’s Secret & Co. presently has an average rating of “Moderate Buy” and a consensus target price of $90.70.

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.