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

Victoria’s Secret & Co. (NYSE:VSXY) issued its earnings results on Thursday. The company reported $0.95 earnings per share for the quarter, beating 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 return on equity of 43.36% and a net margin of 5.46%.The company’s quarterly revenue was up 10.4% on a year-over-year basis.

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 Performance

VSXY opened at $75.48 on Friday. Victoria’s Secret & Co. has a 1-year low of $25.00 and a 1-year high of $102.46. The company has a market cap of $6.00 billion, a price-to-earnings ratio of 40.58, a PEG ratio of 0.50 and a beta of 2.05. The company’s fifty day moving average price is $85.45 and its two-hundred day moving average price is $66.75. The company has a current ratio of 1.26, a quick ratio of 0.41 and a debt-to-equity ratio of 1.17.

Insider Activity

In other news, major shareholder International Pte Ltd Bbrc sold 798,920 shares of the business’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 completion of 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 ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Insiders have sold 1,364,570 shares of company stock worth $121,396,640 in the last ninety days. 0.52% of the stock is owned by company insiders.

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

A number of hedge funds have recently added to or reduced their stakes in the stock. Focus Partners Advisor Solutions LLC purchased a new stake in shares of Victoria’s Secret & Co. in the fourth quarter worth approximately $251,000. Cibc World Markets Corp purchased a new position in shares of Victoria’s Secret & Co. during the fourth quarter valued at approximately $248,000. Norges Bank purchased a new position in shares of Victoria’s Secret & Co. during the fourth quarter valued at approximately $248,000. DRW Securities LLC bought a new stake in Victoria’s Secret & Co. during the fourth quarter worth $243,000. Finally, Mackenzie Financial Corp bought a new stake in Victoria’s Secret & Co. during the fourth quarter worth $237,000. Institutional investors and hedge funds own 90.29% of the company’s stock.

Trending Headlines about 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, well above analyst estimates of approximately $0.77-$0.78 and up from $0.33 a year earlier. Revenue increased 10.4% year over year to $1.61 billion. Victoria’s Secret & Co. Reports Second Quarter 2026 Results
• Positive Sentiment: Management raised its fiscal 2026 outlook, projecting net sales of $7.10 billion-$7.18 billion and adjusted EPS of $4.45-$4.70. Third-quarter revenue guidance of roughly $1.6 billion is broadly in line with consensus. Victoria’s Secret forecasts fiscal 2026 sales and earnings
• Positive Sentiment: Barclays maintained an overweight rating and lowered its price target only modestly, from $108 to $106, leaving substantial implied upside based on the referenced price. Retail investors and some analysts view the recent selloff as a potential entry point.
• Neutral Sentiment: UBS reduced its price target from $95 to $87 and assigned a neutral rating. Although the revised target remains above the stock’s referenced price, the cut signals more cautious expectations for the company’s near-term performance.
• Negative Sentiment: Revenue of $1.61 billion missed the approximately $1.62 billion consensus estimate. Investors focused on the topline miss and signs that sales growth is moderating, prompting a sharp decline in the prior session despite the earnings beat. Victoria’s Secret retreats after revenue miss

Analyst Ratings Changes

VSXY has been the subject of several research reports. JPMorgan Chase & Co. increased their target price on Victoria’s Secret & Co. from $88.00 to $110.00 and gave the company an “overweight” rating in a research report on Tuesday, July 28th. Morgan Stanley raised their price objective on shares of Victoria’s Secret & Co. from $99.00 to $101.00 and gave the company an “overweight” rating in a report on Friday. UBS Group cut their target price on Victoria’s Secret & Co. from $95.00 to $87.00 and set a “neutral” rating on the stock in a report on Friday. The Goldman Sachs Group raised their price target on shares of Victoria’s Secret & Co. from $56.00 to $84.00 and gave the stock a “neutral” rating in a report on Wednesday, June 3rd. Finally, Wells Fargo & Company boosted their price objective on Victoria’s Secret & Co. from $57.00 to $90.00 and gave the company an “overweight” rating in a research note on Wednesday, June 3rd. One analyst has rated the stock with a Strong Buy rating, six have given a Buy rating and six have given a Hold rating to the company’s stock. According to MarketBeat.com, Victoria’s Secret & Co. currently has a consensus rating of “Moderate Buy” and a consensus price target of $89.90.

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.