Analysts have lifted their price target for Victoria’s Secret to $22.70, citing improved brand perception, better-than-expected Q2 results, and effective management execution, though concerns remain about macro pressures and the sustainability of earnings upside.
Analyst Commentary
- Bullish analysts highlight brand initiatives showing progress and improving consumer perception.
- Q2 results beat top- and bottom-line guidance, with positive momentum expected for the remainder of the year.
- Management's strategic execution and product innovation are driving improved store traffic and margin performance.
- Bearish analysts cite ongoing macroeconomic and tariff pressures as limiting near-term earnings upside, with some bottom-line beats not flowing through to full-year guidance.
- Some analysts see balanced upside and downside risk, leading to downward price target revisions despite operational improvements.
What's in the News
- Victoria's Secret raised full-year 2025 net sales guidance to $6.33–$6.41 billion, up from the prior $6.2–$6.3 billion, with Q3 sales forecast at $1.39–$1.42 billion versus $1.347 billion in the previous year.
- The company launched the Body by Victoria FlexFactor Lightly Lined Plunge Demi Bra, expanding its top-selling collection with innovative materials and technology, available both in-store and online.
- Victoria's Secret opened a new 4,950 sq ft store in Bengaluru, India, offering a full range of undergarments, beauty products, and accessories.
- Activist investors Barington Capital and BBRC International criticized the company's leadership and governance, urging board refreshment, increased accountability, and a focus on unlocking value in the beauty business.
- The company reported no share repurchases between February and May 2025, completing no buybacks under the existing program.
Valuation Changes
Summary of Valuation Changes for Victoria's Secret
- The Consensus Analyst Price Target has risen from $21.60 to $22.70.
- The Consensus Revenue Growth forecasts for Victoria's Secret has significantly risen from 1.4% per annum to 2.2% per annum.
- The Future P/E for Victoria's Secret has significantly risen from 16.12x to 21.05x.
Disclaimer
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