Victoria's Secret & Co. (NYSE:VSCO) Trading Down 8.7% - Should You Sell?

Key Points

• Earnings beat and raised guidance: Victoria's Secret reported Q4 EPS of $2.77 (vs. $2.48 est.) and $2.27B revenue, and issued FY2026 guidance of $3.20–$3.45 while targeting 5–6% sales growth and margin expansion driven by core brands, digital and international.
• Stock sold off despite results: Shares fell about 8.7% as investors reacted to a strategic review of the underperforming DailyLook unit and weighed near-term risks around margin mix and valuation, with trading volume below average.
• Analyst and institutional backdrop: Several firms upgraded or raised price targets (some up to $80), but the consensus remains a "Hold" with an average target near $60 and institutional ownership around 90%.

Shares of Victoria's Secret & Co. (NYSE:VSCO - Get Free Report) were down 8.7% during trading on Friday . The company traded as low as $47.83 and last traded at $48.12. Approximately 901,859 shares were traded during mid-day trading, a decline of 55% from the average daily volume of 2,016,441 shares. The stock had previously closed at $52.71.

Key Victoria's Secret & Co. News

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

• Positive Sentiment: Beat expectations and raised guidance — VSCO posted Q4 adjusted EPS of $2.77 and revenue of $2.27B, topping consensus; management issued FY2026 EPS and revenue guidance above Street forecasts, signaling confidence in the turnaround. Press Release: Q4 and Full Year Results
• Positive Sentiment: Sales momentum and strategy — Comparable sales rose (8% Q4; 5% full year) and management highlighted stronger performance at core brands (including Pink), digital growth and international expansion as drivers for margin improvement. CNBC: Sales Growth and Strategy
• Positive Sentiment: Analyst/coverage takeaways emphasize upside — Multiple outlets note the beat, stronger-than-expected guidance and a management presentation outlining 5%–6% sales growth plus margin expansion for 2026. Seeking Alpha: Growth & Margin Outlook
• Neutral Sentiment: Full disclosure resources — Earnings call transcript, slide deck and presentations are available for investors who want management detail and Q&A context. Seeking Alpha: Earnings Call Transcript MSN: Call Transcript
• Negative Sentiment: Strategic review of DailyLook and operating-income weakness — Management initiated a strategic review of the DailyLook business after reporting a drop in its operating income, creating uncertainty about that division’s outlook and potential restructuring or divestiture. MSN: Strategic Review of DailyLook
• Negative Sentiment: Market reaction — Despite the beat, the stock sold off (reports note shares slid), suggesting investors are weighing near-term risks (DailyLook, margin mix, valuation) and locking in gains after the turnaround run. Blockonomi: Stock Slides Despite Beats

Wall Street Analyst Weigh In

A number of equities research analysts have recently weighed in on VSCO shares. JPMorgan Chase & Co. upgraded shares of Victoria's Secret & Co. from a "neutral" rating to an "overweight" rating and boosted their price objective for the stock from $34.00 to $60.00 in a report on Friday, December 5th. Zacks Research lowered shares of Victoria's Secret & Co. from a "strong-buy" rating to a "hold" rating in a report on Friday, February 6th. TD Cowen reaffirmed a "hold" rating and set a $58.00 price objective (down from $60.00) on shares of Victoria's Secret & Co. in a research note on Friday. Morgan Stanley upgraded shares of Victoria's Secret & Co. from an "equal weight" rating to an "overweight" rating and set a $60.00 target price for the company in a report on Friday, December 5th. Finally, Barclays boosted their price target on Victoria's Secret & Co. from $65.00 to $80.00 and gave the company an "overweight" rating in a report on Monday. Six investment analysts have rated the stock with a Buy rating and seven have given a Hold rating to the stock. According to MarketBeat.com, Victoria's Secret & Co. has an average rating of "Hold" and a consensus price target of $60.20.

Victoria's Secret & Co. Trading Down 8.1%

The company has a market cap of $3.89 billion, a PE ratio of 23.63, a PEG ratio of 2.21 and a beta of 2.19. The stock has a 50 day moving average price of $59.53 and a 200 day moving average price of $42.96. The company has a current ratio of 1.30, a quick ratio of 0.38 and a debt-to-equity ratio of 1.96.

Victoria's Secret & Co. (NYSE:VSCO - Get Free Report) last announced its earnings results on Thursday, March 5th. The company reported $2.77 EPS for the quarter, beating analysts' consensus estimates of $2.48 by $0.29. Victoria's Secret & Co. had a net margin of 2.67% and a return on equity of 33.47%. The firm had revenue of $2.27 billion for the quarter, compared to analysts' expectations of $2.22 billion. During the same quarter in the previous year, the business posted $2.60 EPS. The company's quarterly revenue was up 7.8% on a year-over-year basis. Victoria's Secret & Co. has set its Q1 2026 guidance at 0.200-0.300 EPS and its FY 2026 guidance at 3.200-3.450 EPS. Sell-side analysts predict that Victoria's Secret & Co. will post 2.37 EPS for the current fiscal year.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in VSCO. Bbfit Investments PTE Ltd. bought a new stake in Victoria's Secret & Co. in the fourth quarter worth $558,521,000. Vanguard Group Inc. lifted its holdings in shares of Victoria's Secret & Co. by 3.1% during the fourth quarter. Vanguard Group Inc. now owns 8,748,614 shares of the company's stock valued at $473,912,000 after purchasing an additional 263,079 shares in the last quarter. Goldentree Asset Management LP boosted its position in shares of Victoria's Secret & Co. by 71.8% during the second quarter. Goldentree Asset Management LP now owns 2,989,087 shares of the company's stock valued at $55,242,000 after buying an additional 1,249,065 shares during the last quarter. Dimensional Fund Advisors LP increased its holdings 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 worth $69,187,000 after buying an additional 238,516 shares in the last quarter. Finally, Cramer Rosenthal Mcglynn LLC boosted its holdings in shares of Victoria's Secret & Co. by 32.0% during the 3rd quarter. Cramer Rosenthal Mcglynn LLC now owns 2,363,850 shares of the company's stock valued at $64,155,000 after acquiring an additional 572,844 shares during the last quarter. Institutional investors own 90.29% of the company's stock.

About Victoria's Secret & Co.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.