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    Victoria's Secret (VSCO) Is Up 7.3% After Raising Sales Guidance And Boosting Margins - Has The Bull Case Changed?

    Simply Wall St·02/04/2026 05:19:33
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    • Victoria’s Secret & Co. recently reported year-ago third-quarter 2025 results showing a 9% rise in net sales, a 170-basis-point expansion in adjusted gross margin, and raised full-year sales guidance to US$6.45–US$6.48 billion.
    • Hedge fund Greenlight Capital cited Victoria’s Secret as a leading contributor to its fourth-quarter 2025 performance, underscoring how management’s course corrections and early signs of brand recovery are resonating with institutional investors even as the company still contends with competitive and margin pressures.
    • Against this backdrop, we’ll examine how Victoria’s Secret’s improved guidance and early turnaround progress may influence its investment narrative.

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    What Is Victoria's Secret's Investment Narrative?

    To own Victoria’s Secret today, you have to believe the brand refresh, merchandising reset and omnichannel push can translate improving sales and margins into durable profitability, despite a highly competitive lingerie and beauty market. The latest quarter’s 9% net sales growth, 170-basis-point gross margin expansion and higher full-year sales guidance to about US$6.45–US$6.48 billion strengthen the near-term catalyst around an early turnaround, helping justify the strong share price move over the past few months. Greenlight Capital flagging the stock as a key contributor adds to that momentum, but the absence of recent buybacks, ongoing net losses year to date and elevated debt mean execution risk is still front and center. In other words, the news supports the story, it does not complete it.

    However, one key risk could quickly change how the turnaround is perceived by the market. Victoria's Secret's shares have been on the rise but are still potentially undervalued by 36%. Find out what it's worth.

    Exploring Other Perspectives

    VSCO 1-Year Stock Price Chart
    VSCO 1-Year Stock Price Chart
    The six fair value views from the Simply Wall St Community span roughly US$24 to US$94 per share, underlining how differently retail investors see Victoria’s Secret’s potential. Set against the recent guidance upgrade and early, but incomplete, turnaround, that spread suggests it is worth weighing multiple opinions before deciding how much of the recovery story to price in.

    Explore 6 other fair value estimates on Victoria's Secret - why the stock might be worth less than half the current price!

    Build Your Own Victoria's Secret Narrative

    Disagree with this assessment? Create your own narrative 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.