Victoria’s Secret & Co. (NYSE:VSXY) Releases Earnings Results, Beats Expectations By $0.19 EPS

Victoria’s Secret & Co. (NYSE:VSXY) posted its quarterly earnings results on Thursday. The company reported $0.95 earnings per share for the quarter, topping analysts’ consensus estimates of $0.76 by $0.19, FiscalAI reports. The firm had revenue of $1.61 billion for the quarter, compared to the consensus estimate of $1.62 billion. Victoria’s Secret & Co. had a net margin of 3.11% and a return on equity of 38.03%. The business’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. Price Performance

Shares of VSXY stock opened at $74.09 on Friday. Victoria’s Secret & Co. has a 52 week low of $23.15 and a 52 week high of $102.46. The stock has a market capitalization of $5.88 billion, a PE ratio of 39.83, a PEG 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. The stock’s fifty day moving average is $85.69 and its 200-day moving average is $66.69.

Victoria’s Secret & Co. News Summary

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.

Insider Activity

In related news, major shareholder International Pte Ltd Bbrc sold 798,920 shares of the company’s stock in a transaction dated 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 transaction, the insider owned 7,810,631 shares in the company, valued at $696,317,753.65. This represents a 9.28% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Insiders sold 1,364,570 shares of company stock valued at $121,396,640 over the last three months. Insiders own 0.52% of the company’s stock.

Institutional Trading of Victoria’s Secret & Co.

Hedge funds have recently modified their holdings of the stock. DV Equities LLC bought a new position in Victoria’s Secret & Co. in the 4th quarter worth approximately $49,000. Quantbot Technologies LP acquired a new stake in shares of Victoria’s Secret & Co. in the 3rd quarter valued at $53,000. Kestra Advisory Services LLC bought a new stake in shares of Victoria’s Secret & Co. during the fourth quarter worth $78,000. Smartleaf Asset Management LLC lifted its stake 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 during the period. Finally, Lazard Asset Management LLC lifted its stake in shares of Victoria’s Secret & Co. by 7.7% during the second quarter. Lazard Asset Management LLC now owns 7,258 shares of the company’s stock valued at $133,000 after acquiring an additional 521 shares during the period. 90.29% of the stock is owned by institutional investors.

Wall Street Analyst Weigh In

A number of research firms have weighed in on VSXY. Barclays lifted their price objective on Victoria’s Secret & Co. from $67.00 to $108.00 and gave the company an “overweight” rating in a report on Wednesday, June 3rd. Wells Fargo & Company upped their price target on Victoria’s Secret & Co. from $57.00 to $90.00 and gave the company an “overweight” rating in a research report on Wednesday, June 3rd. The Goldman Sachs Group lifted their price objective on Victoria’s Secret & Co. from $56.00 to $84.00 and gave the company a “neutral” rating in a report on Wednesday, June 3rd. Jefferies Financial Group lowered shares of Victoria’s Secret & Co. from a “buy” rating to a “hold” rating and upped their target price for the stock from $65.00 to $73.00 in a report on Wednesday, June 3rd. Finally, Weiss Ratings raised shares of Victoria’s Secret & Co. from a “hold (c-)” rating to a “hold (c)” rating in a report on Wednesday, June 24th. One research analyst has rated the stock with a Strong Buy rating, six have given a Buy rating and six have assigned a Hold rating to the company. According to MarketBeat, the stock presently has a consensus 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.