Victoria’s Secret & Co. (NYSE:VSCO) Issues Quarterly Earnings Results

Victoria’s Secret & Co. (NYSE:VSCO) released its earnings results on Thursday. The company reported $2.77 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.48 by $0.29, FiscalAI reports. Victoria’s Secret & Co. had a net margin of 2.67% and a return on equity of 33.47%. The company had revenue of $2.27 billion during the quarter, compared to the consensus estimate of $2.22 billion. During the same quarter in the prior year, the firm earned $2.60 EPS. The company’s revenue was up 7.8% compared to the same quarter last year. Victoria’s Secret & Co. updated its Q1 2026 guidance to 0.200-0.300 EPS and its FY 2026 guidance to 3.200-3.450 EPS.

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

• Company beat top- and bottom-line guidance in FY25, reporting net sales of $6.553B (ex-gift card benefit), Q4 comp sales +8%, and adjusted EPS up 22% to $3, driven by higher traffic, AOV and reduced promotions.
• Management says the “Path to Potential” is gaining traction—bras returned to growth, PINK delivered its strongest year in a decade, beauty grew, and the customer file expanded, helped by the fashion show and more targeted product and marketing.
• The company recorded a non-cash pre-tax $120M impairment and ~$36M of inventory/reserve and restructuring charges tied to Adore Me, and initiated a strategic review of DailyLook, indicating portfolio cleanup and one-time hits excluded from adjusted results.
• Tariffs remain a material headwind—FY25 faced about $85M net pressure and FY26 assumes ~$160M gross/~$40M net incremental cost (heaviest in H1, ~175 bps in Q1); management expects to mitigate most via sourcing, logistics, pricing and promotion discipline.
• International is a major growth driver—Q4 international sales rose 43% (led by China and social commerce), and the company targets double-digit international growth in FY26 while expanding digital/social efforts and rolling out more “Store of the Future” locations.

Victoria’s Secret & Co. Stock Down 12.6%

Shares of VSCO stock opened at $52.45 on Friday. The company has a market capitalization of $4.21 billion, a price-to-earnings ratio of 25.59, a PEG ratio of 2.21 and a beta of 2.19. The company has a debt-to-equity ratio of 1.96, a quick ratio of 0.38 and a current ratio of 1.30. The stock’s 50 day simple moving average is $59.53 and its 200 day simple moving average is $42.96. Victoria’s Secret & Co. has a twelve month low of $13.76 and a twelve month high of $66.89.

More Victoria’s Secret & Co. News

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

• Positive Sentiment: Q4 earnings and revenue beat consensus — VSCO reported adjusted EPS roughly $2.77 and revenue of ~$2.27B, topping expectations and showing comparable-sales growth. This is the primary driver of the bullish case that the turnaround is working. Victoria’s Secret & Co. Reports 2025 Fourth Quarter and Full Year Results
• Positive Sentiment: Raise in FY2026 and Q1 guidance — management issued FY26 EPS of $3.20–3.45 (above consensus) and Q1 EPS of $0.20–0.30, plus higher revenue outlook, signaling confidence in continued sales and margin expansion. That guidance is a strong forward-looking positive for earnings expectations. Victoria’s Secret & Co. Reports 2025 Fourth Quarter and Full Year Results
• Positive Sentiment: Momentum across brands and channels — management highlighted a multi-quarter sales rebound (Pink brand strength cited) and cited the company’s turnaround strategy as working, supporting the case for ongoing comp growth and margin recovery. Victoria’s Secret posts longest sales growth streak in four years as shoppers return to Pink brand
• Neutral Sentiment: Investor materials and conference call available — the earnings slide deck and full earnings call transcript were published; these contain details on channel trends, international plans and margin drivers for deeper diligence. Q4 2025 Earnings Call Transcript
• Negative Sentiment: DailyLook operating income declined and the company initiated a strategic review — VSCO said DailyLook’s operating income fell, prompting a strategic review of the brand; investors often react negatively to asset reviews because they can signal underperformance or potential one-time charges. Victoria’s Secret Initiates Strategic Review of DailyLook Amid Q4 Results
• Negative Sentiment: Shares sold off despite the beat — several outlets noted the stock dropped after the report, suggesting either profit-taking, concerns about the DailyLook issue, or that the stronger guidance was already priced in. That market reaction explains downward pressure even with positive fundamentals. VSCO Stock Slides Despite Crushing Q4 Earnings Expectations

Institutional Trading of Victoria’s Secret & Co.

Several large investors have recently modified their holdings of VSCO. Dimensional Fund Advisors LP grew its stake in Victoria’s Secret & Co. by 10.3% in the 3rd quarter. Dimensional Fund Advisors LP now owns 2,549,501 shares of the company’s stock valued at $69,187,000 after buying an additional 238,516 shares during the last quarter. Marshall Wace LLP boosted its holdings in Victoria’s Secret & Co. by 301.4% during the fourth quarter. Marshall Wace LLP now owns 1,792,727 shares of the company’s stock valued at $97,112,000 after acquiring an additional 1,346,104 shares during the period. Fuller & Thaler Asset Management Inc. acquired a new stake in shares of Victoria’s Secret & Co. in the fourth quarter valued at about $87,786,000. Bank of America Corp DE increased its stake in shares of Victoria’s Secret & Co. by 44.2% in the second quarter. Bank of America Corp DE now owns 1,415,200 shares of the company’s stock worth $26,210,000 after purchasing an additional 434,012 shares during the period. Finally, Arrowstreet Capital Limited Partnership increased its stake in shares of Victoria’s Secret & Co. by 47.0% in the fourth quarter. Arrowstreet Capital Limited Partnership now owns 1,330,965 shares of the company’s stock worth $72,098,000 after purchasing an additional 425,805 shares during the period. 90.29% of the stock is owned by institutional investors.

Wall Street Analysts Forecast Growth

Several analysts recently issued reports on VSCO shares. Barclays increased their price objective on Victoria’s Secret & Co. from $65.00 to $80.00 and gave the stock an “overweight” rating in a report on Monday. JPMorgan Chase & Co. raised Victoria’s Secret & Co. from a “neutral” rating to an “overweight” rating and raised their price target for the stock from $34.00 to $60.00 in a research note on Friday, December 5th. Guggenheim began coverage on Victoria’s Secret & Co. in a research note on Tuesday, December 9th. They issued a “neutral” rating for the company. Jefferies Financial Group restated a “buy” rating on shares of Victoria’s Secret & Co. in a report on Thursday. Finally, Morgan Stanley raised shares of Victoria’s Secret & Co. from an “equal weight” rating to an “overweight” rating and set a $60.00 price objective on the stock in a research report on Friday, December 5th. Six research analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the company’s stock. According to data from MarketBeat.com, Victoria’s Secret & Co. presently has a consensus rating of “Hold” and a consensus target price of $62.11.

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.