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    What Victoria's Secret (VSCO)'s Surging Store Traffic and Full-Price Sales Mean for Shareholders

    Simply Wall St·09/13/2025 18:12:27
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    • Victoria’s Secret recently reported strong quarterly results that surpassed analyst expectations, highlighting improved store traffic and increased full-price sales as signs that its turnaround efforts are gaining momentum.
    • Analyst commentary points to the company’s ongoing transformation and marketing initiatives driving customer acquisition, while also noting that tariff pressures and rising costs could weigh on future earnings visibility.
    • To explore how Victoria’s Secret’s visible gains in store traffic and full-price selling may reshape its investment outlook, let’s review its narrative.

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    Victoria's Secret Investment Narrative Recap

    For investors to feel comfortable owning Victoria’s Secret stock, they need to believe the company can continue driving meaningful store traffic, maintain full-price sales, and convert brand momentum into sustainable earnings. The recent upside surprise in quarterly results reinforces the short-term catalyst of full-price selling, but tariff pressures and rising costs remain the key risks; the Q3 outlook suggests that while operational progress is real, risks to earnings visibility are still material and should not be underestimated. Among the latest updates, the company’s guidance lift for full-year sales, raising expectations to US$6,330 million–US$6,410 million, is particularly relevant. This increase demonstrates management’s confidence in near-term revenue even as macro and cost concerns persist, directly tying to the short-term catalysts at play in the business today. Yet, in contrast to these positive signals, investors should be aware that tariff-related headwinds in 2025 could impact the company’s gross margins...

    Read the full narrative on Victoria's Secret (it's free!)

    Victoria's Secret's outlook anticipates $6.7 billion in revenue and $143.6 million in earnings by 2028. This forecast reflects a 2.2% annual revenue growth rate and a $7.8 million decrease in earnings from the current $151.4 million.

    Uncover how Victoria's Secret's forecasts yield a $22.70 fair value, a 14% downside to its current price.

    Exploring Other Perspectives

    VSCO Community Fair Values as at Sep 2025
    VSCO Community Fair Values as at Sep 2025

    Simply Wall St Community members set fair values for Victoria’s Secret between US$20.79 and US$33.90, drawing from five distinct analyses. While some see upside, persistent tariff exposure continues to frame the conversation on future profitability and operational flexibility, considering these diverse viewpoints can add depth to your understanding.

    Explore 5 other fair value estimates on Victoria's Secret - why the stock might be worth 21% less than the current price!

    Build Your Own Victoria's Secret Narrative

    Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.