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

Victoria’s Secret & Co. (NYSE:VSXY) announced its earnings results on Thursday. The company reported $0.95 earnings per share (EPS) for the quarter, beating 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%. Victoria’s Secret & Co.’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 NYSE VSXY opened at $74.09 on Friday. The company has a 50 day simple moving average of $85.69 and a 200 day simple moving average of $66.69. The firm has a market cap of $5.88 billion, a PE ratio of 39.83, a price-to-earnings-growth ratio of 0.58 and a beta of 2.05. Victoria’s Secret & Co. has a 1 year low of $23.15 and a 1 year high of $102.46. The company has a debt-to-equity ratio of 1.17, a current ratio of 1.26 and a quick ratio of 0.41.

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.

Insiders Place Their Bets

In other Victoria’s Secret & Co. news, major shareholder International Pte Ltd Bbrc sold 798,920 shares of the business’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 sale, the insider directly owned 7,810,631 shares of the company’s stock, valued at $696,317,753.65. The trade was a 9.28% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Over the last 90 days, insiders have sold 1,364,570 shares of company stock worth $121,396,640. Insiders own 0.52% of the company’s stock.

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

A number of hedge funds have recently modified their holdings of VSXY. Fuller & Thaler Asset Management Inc. bought a new position in Victoria’s Secret & Co. during the 4th quarter worth $87,786,000. Marshall Wace LLP grew its position in shares of Victoria’s Secret & Co. by 301.4% in the 4th quarter. Marshall Wace LLP now owns 1,792,727 shares of the company’s stock valued at $97,112,000 after buying an additional 1,346,104 shares during the last quarter. Price T Rowe Associates Inc. MD increased its stake in shares of Victoria’s Secret & Co. by 1,454.1% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 1,045,465 shares of the company’s stock valued at $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. in the third quarter valued at about $20,870,000. Finally, Bridgeway Capital Management LLC bought a new position in shares of Victoria’s Secret & Co. during the third quarter worth about $17,644,000. Institutional investors and hedge funds own 90.29% of the company’s stock.

Wall Street Analyst Weigh In

A number of analysts have issued reports on the stock. Wells Fargo & Company boosted their price objective on shares of Victoria’s Secret & Co. from $57.00 to $90.00 and gave the company an “overweight” rating in a report on Wednesday, June 3rd. Telsey Advisory Group raised their target price on shares of Victoria’s Secret & Co. from $90.00 to $100.00 and gave the stock an “outperform” rating in a report on Wednesday. Weiss Ratings upgraded shares of Victoria’s Secret & Co. from a “hold (c-)” rating to a “hold (c)” rating in a research report on Wednesday, June 24th. UBS Group boosted their price target on Victoria’s Secret & Co. from $90.00 to $95.00 and gave the company a “neutral” rating in a research note on Tuesday, August 18th. Finally, Jefferies Financial Group lowered Victoria’s Secret & Co. from a “buy” rating to a “hold” rating and raised their price objective for the stock from $65.00 to $73.00 in a research note on Wednesday, June 3rd. One analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating and six have given a Hold rating to the company’s stock. According to MarketBeat, Victoria’s Secret & Co. has an average rating of “Moderate Buy” and a consensus price target 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.