Victoria's Secret & Co. (NYSE:VSXY) Shares Gap Down - Here's Why

Key Points

• Victoria’s Secret shares gapped down after the stock opened below its prior close, despite a recent run-up and heavy trading volume.
• The company delivered a strong first-quarter 2026 earnings beat, posting $0.60 EPS versus $0.29 expected and revenue of $1.56 billion versus $1.52 billion expected, while also swinging back to a profit with improved margins.
• Management raised full-year guidance above Street expectations, and analysts responded more positively with firms like Wells Fargo and Telsey lifting their price targets to $90.

Victoria's Secret & Co. (NYSE:VSXY - Get Free Report) shares gapped down prior to trading on Wednesday . The stock had previously closed at $80.06, but opened at $75.55. Victoria's Secret & Co. shares last traded at $73.30, with a volume of 1,299,738 shares trading hands.

Victoria's Secret & Co. News Summary

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

• Positive Sentiment: The company reported strong first-quarter 2026 results, with earnings of $0.60 per share versus $0.29 expected and revenue of $1.56 billion versus $1.52 billion expected, while swinging to a profit and showing improved margins. Article title
• Positive Sentiment: Management raised full-year 2026 guidance above Street expectations, signaling confidence that stronger sales and lower tariff costs can continue to support the turnaround. Article title
• Positive Sentiment: Several analysts turned more bullish after the report: Wells Fargo raised its price target to $90 and Telsey Advisory Group also lifted its target to $90, both implying further upside from recent levels. Article title
• Positive Sentiment: Independent proxy advisors ISS, Glass Lewis, and Egan-Jones all recommended shareholders vote for the company’s nominees, reducing the risk of board disruption ahead of the June 11 annual meeting. Article title
• Positive Sentiment: Coverage describing record highs and a successful turnaround underscores improving investor sentiment as the company’s bra strategy and broader transformation appear to be resonating with shoppers. Article title

Analyst Upgrades and Downgrades

A number of analysts have recently weighed in on VSXY shares. Weiss Ratings cut shares of Victoria's Secret & Co. from a "hold (c)" rating to a "hold (c-)" rating in a report on Monday, April 27th. Zacks Research raised shares of Victoria's Secret & Co. from a "hold" rating to a "strong-buy" rating in a research report on Tuesday, March 10th. Bank of America upgraded shares of Victoria's Secret & Co. from a "neutral" rating to a "buy" rating and raised their target price for the company from $58.00 to $68.00 in a research note on Wednesday, April 29th. TD Cowen cut their price target on shares of Victoria's Secret & Co. from $60.00 to $58.00 and set a "hold" rating on the stock in a report on Friday, March 6th. Finally, Telsey Advisory Group upped their price target on Victoria's Secret & Co. from $71.00 to $90.00 and gave the stock an "outperform" rating in a research report on Wednesday. One equities research analyst has rated the stock with a Strong Buy rating, six have given a Buy rating and six have issued a Hold rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $75.00.

Victoria's Secret & Co. Price Performance

The firm has a market cap of $5.88 billion, a PE ratio of 39.80, a price-to-earnings-growth ratio of 0.95 and a beta of 2.16. The company has a quick ratio of 0.54, a current ratio of 1.25 and a debt-to-equity ratio of 1.07. The stock has a 50 day moving average price of $49.54 and a two-hundred day moving average price of $51.89.

Victoria's Secret & Co. (NYSE:VSXY - Get Free Report) last posted its quarterly earnings data on Tuesday, June 2nd. The company reported $0.60 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.29 by $0.31. The firm had revenue of $1.56 billion for the quarter, compared to the consensus estimate of $1.52 billion. Victoria's Secret & Co. had a net margin of 2.45% and a return on equity of 33.55%. During the same quarter in the prior year, the company posted $0.09 earnings per share. As a group, equities analysts expect that Victoria's Secret & Co. will post 3.49 earnings per share for the current year.

Insider Buying and Selling

In related news, Director Donna James purchased 2,175 shares of the firm's stock in a transaction on Thursday, April 2nd. The stock was acquired at an average price of $46.23 per share, with a total value of $100,550.25. Following the completion of the acquisition, the director owned 63,097 shares in the company, valued at approximately $2,916,974.31. This represents a 3.57% increase in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. Also, Director Anne Sheehan purchased 4,842 shares of the firm's stock in a transaction on Thursday, April 2nd. The stock was bought at an average cost of $45.86 per share, with a total value of $222,054.12. Following the acquisition, the director owned 34,261 shares of the company's stock, valued at approximately $1,571,209.46. The trade was a 16.46% increase in their position. The disclosure for this purchase is available in the SEC filing. Corporate insiders own 0.52% of the company's stock.

Institutional Trading of Victoria's Secret & Co.

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Parallel Advisors LLC increased its holdings in shares of Victoria's Secret & Co. by 666.7% in the first quarter. Parallel Advisors LLC now owns 621 shares of the company's stock valued at $29,000 after purchasing an additional 540 shares during the period. Aster Capital Management DIFC Ltd purchased a new position in shares of Victoria's Secret & Co. in the third quarter worth about $30,000. Pinpoint Asset Management Singapore Pte. Ltd. acquired a new stake in shares of Victoria's Secret & Co. during the fourth quarter worth about $33,000. Hantz Financial Services Inc. lifted its holdings in shares of Victoria's Secret & Co. by 104.3% during the fourth quarter. Hantz Financial Services Inc. now owns 811 shares of the company's stock worth $44,000 after purchasing an additional 414 shares during the period. Finally, State of Wyoming purchased a new stake in Victoria's Secret & Co. in the third quarter valued at approximately $48,000. Institutional investors and hedge funds own 90.29% of the company's stock.

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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