Does Tariff Relief For Sourcing Costs Change The Bull Case For Victoria's Secret (VSCO)?

• The White House recently delayed previously scheduled tariff hikes that would have doubled duties on many home goods, keeping existing 25% rates in place and easing expected cost pressures for retailers such as Victoria’s Secret.
• This policy shift offers short-term relief for Victoria’s Secret’s input costs and planning visibility, contrasting with earlier concerns about rising tariff headwinds and margin pressure.
• We’ll now explore how this temporary tariff delay, and its impact on cost pressures, may influence Victoria’s Secret’s broader investment narrative.

Uncover the next big thing with financially sound penny stocks that balance risk and reward.

Victoria's Secret Investment Narrative Recap

To stay invested in Victoria’s Secret, you really need to believe the brand refresh, omnichannel push and product innovation can offset flat recent sales and competitive pressure. The White House’s tariff delay eases near term cost concerns, but it does little to change the bigger risk around how effectively the company can reignite demand after several years of muted same store performance.

The most relevant recent update here is the company’s raised full year 2025 net sales guidance to US$6.450 billion to US$6.480 billion, alongside modestly improving losses. That outlook sits against the backdrop of weak earnings per share trends over the last three years and highlights how much still depends on the success of its brand and merchandising efforts rather than temporary relief on tariffs.

Yet beneath the relief on tariffs, investors should be aware of how intensifying competition among direct to consumer lingerie brands could...

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

Victoria's Secret's narrative projects $6.7 billion revenue and $143.6 million earnings by 2028. This requires 2.2% yearly revenue growth and a $7.8 million earnings decrease from $151.4 million today.

Uncover how Victoria's Secret's forecasts yield a $31.20 fair value, a 43% downside to its current price.

Exploring Other Perspectives

Five members of the Simply Wall St Community currently estimate fair value between US$23.84 and US$78.45 per share, showing how far apart individual views can be. When you set those opinions against recent concerns about flat sales and falling earnings per share, it becomes even more important to compare several conflicting expectations for Victoria’s Secret’s future performance.

Explore 5 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 existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Victoria's Secret research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Victoria's Secret research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Victoria's Secret's overall financial health at a glance.

Interested In Other Possibilities?

Right now could be the best entry point. These picks are fresh from our daily scans. Don't delay:

• The best AI stocks today may lie beyond giants like Nvidia and Microsoft. Find the next big opportunity with these 25 smaller AI-focused companies with strong growth potential through early-stage innovation in machine learning, automation, and data intelligence that could fund your retirement.
• The end of cancer? These 29 emerging AI stocks are developing tech that will allow early identification of life changing diseases like cancer and Alzheimer's.
• Trump has pledged to "unleash" American oil and gas and these 22 US stocks have developments that are poised to benefit.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com