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In a challenging retail environment, Victoria’s Secret Co (NYSE:VSCO) stock has touched a 52-week low, dipping to $15.07. According to InvestingPro data, the company trades at a P/E ratio of 9, with eight analysts recently revising earnings expectations downward. The lingerie giant, known for its high-profile fashion shows and celebrity endorsements, has faced a significant downturn over the past year. Despite generating $6.2 billion in revenue and maintaining a healthy 45% gross margin, the company’s stock has shown significant volatility. This decline underscores the broader struggles within the retail sector, as companies grapple with shifting consumer preferences and the ongoing impact of global economic pressures. Investors and analysts are closely monitoring Victoria’s Secret’s strategic moves to revitalize its brand and financial performance in the face of these headwinds. InvestingPro analysis indicates the stock is currently undervalued, with additional insights available in the comprehensive Pro Research Report covering this retail sector player.
In other recent news, Victoria’s Secret & Co. reported fourth-quarter 2025 earnings that exceeded Wall Street expectations, with earnings per share of $2.60 and revenue reaching $2.11 billion. This performance surpassed analyst forecasts of $2.27 EPS and $2.09 billion in revenue. Despite these positive results, analysts at UBS and TD Cowen have lowered their price targets for Victoria’s Secret, citing concerns about the company’s future guidance and potential challenges, such as tariffs and consumer spending. UBS reduced its price target to $25, maintaining a Neutral rating, while TD Cowen decreased its target to $22.50, keeping a Hold rating.
S&P Global Ratings revised Victoria’s Secret’s outlook from negative to stable, highlighting improved operating performance and financial metrics. The company’s net sales increased by 1% in the fourth quarter, with comparable same-store sales rising by 3%. However, S&P Global anticipates muted sales growth for fiscal 2025, projecting only a 1% increase due to consumer shifts toward more affordable retailers.
Victoria’s Secret plans to open between 13 and 53 new stores in fiscal 2025, focusing on partner-operated locations, and aims to repurchase shares under its board-approved program. The company continues to focus on product innovation and operational efficiency, despite facing potential headwinds such as tariff impacts and input cost volatility. Analysts have expressed cautious optimism about the company’s strategic changes, particularly in enhancing its PINK brand and expanding product categories like bras and swimwear.
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