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

Key Points

• Victoria’s Secret beat quarterly expectations: Adjusted EPS was $0.95 versus the $0.77 consensus, while revenue rose 10.4% year over year to $1.61 billion. Adjusted operating income increased 125% to $124 million, helped by stronger regular-price sales and a 320-basis-point gross-margin expansion.
• Management raised fiscal 2026 guidance to sales of $7.10 billion–$7.18 billion and adjusted EPS of $4.45–$4.70, citing broad-based growth across Victoria’s Secret, PINK, Beauty and international markets.
• Despite the earnings beat, the stock faced pressure after revenue came in slightly below expectations and third-quarter growth guidance was not an acceleration. Reduced sale inventory, higher transportation costs and increased marketing spending are expected to constrain second-half margins.

Victoria's Secret & Co. (NYSE:VSXY - Get Free Report) announced its quarterly earnings data on Thursday. The company reported $0.95 earnings per share for the quarter, topping the consensus estimate of $0.77 by $0.18, Briefing.com reports. Victoria's Secret & Co. had a return on equity of 38.03% and a net margin of 3.11%.The company's revenue for the quarter 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 Performance

NYSE VSXY opened at $74.09 on Friday. The firm has a market cap of $5.88 billion, a price-to-earnings ratio of 39.83, a PEG ratio of 0.58 and a beta of 2.05. The company has a current ratio of 1.26, a quick ratio of 0.41 and a debt-to-equity ratio of 1.17. Victoria's Secret & Co. has a 1-year low of $23.15 and a 1-year high of $102.46. The company has a 50 day moving average of $85.69 and a 200-day moving average of $66.69.

Key Stories 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.

Analysts Set New Price Targets

A number of equities research analysts have weighed in on the stock. Weiss Ratings upgraded shares of Victoria's Secret & Co. from a "hold (c-)" rating to a "hold (c)" rating in a research note on Wednesday, June 24th. Morgan Stanley reaffirmed an "overweight" rating and set a $99.00 price objective on shares of Victoria's Secret & Co. in a report on Monday, July 6th. Wells Fargo & Company upped their target price on shares of 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. The Goldman Sachs Group upped their price objective on Victoria's Secret & Co. from $56.00 to $84.00 and gave the company a "neutral" rating in a research note on Wednesday, June 3rd. Finally, Telsey Advisory Group raised their target price on Victoria's Secret & Co. from $90.00 to $100.00 and gave the stock an "outperform" rating in a research report on Wednesday. One research analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating and six have issued a Hold rating to the company's stock. According to data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average price target of $90.70.

Insider Buying and Selling

In related news, major shareholder International Pte Ltd Bbrc sold 798,920 shares of the firm's stock in a transaction on Tuesday, July 28th. The stock was 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. This trade represents a 9.28% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. In the last 90 days, insiders sold 1,364,570 shares of company stock worth $121,396,640. 0.52% of the stock is owned by corporate insiders.

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

Large investors have recently modified their holdings of the stock. Smartleaf Asset Management LLC increased its holdings in shares of Victoria's Secret & Co. by 11.5% in the fourth quarter. Smartleaf Asset Management LLC now owns 1,935 shares of the company's stock valued at $106,000 after purchasing an additional 199 shares in the last quarter. Maryland State Retirement & Pension System raised its holdings in Victoria's Secret & Co. by 2.1% during the 4th quarter. Maryland State Retirement & Pension System now owns 11,725 shares of the company's stock worth $635,000 after purchasing an additional 245 shares during the last quarter. California State Teachers Retirement System lifted its position in Victoria's Secret & Co. by 0.7% during the 2nd quarter. California State Teachers Retirement System now owns 65,191 shares of the company's stock valued at $1,207,000 after purchasing an additional 483 shares during the period. Lazard Asset Management LLC lifted its position in Victoria's Secret & Co. by 7.7% during the 2nd quarter. Lazard Asset Management LLC now owns 7,258 shares of the company's stock valued at $133,000 after purchasing an additional 521 shares during the period. Finally, Raymond James Financial Inc. boosted its stake in shares of Victoria's Secret & Co. by 1.1% in the 3rd quarter. Raymond James Financial Inc. now owns 67,981 shares of the company's stock valued at $1,845,000 after purchasing an additional 769 shares during the last quarter. 90.29% of the stock is currently owned by institutional investors and hedge funds.

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.

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