The Bull Case For Victoria's Secret (VSCO) Could Change Following Upbeat Sales Outlook And Analyst Upgrade

• In early December 2025, Victoria’s Secret & Co. reported third-quarter 2025 sales of US$1,472 million with a reduced net loss of US$37 million, raised its full-year 2025 net sales outlook to US$6.45–6.48 billion, and projected fourth-quarter net sales of US$2.17–2.20 billion, above last year’s US$2.106 billion.
• Wells Fargo’s upgrade of Victoria’s Secret, citing improving product and marketing execution and a rebound at PINK, suggests that recent operational changes are starting to influence how the company is viewed by the market and by consumers.
• With Victoria’s Secret raising its full-year 2025 sales guidance, we’ll now explore how this shift feeds into the existing investment narrative.

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Victoria's Secret Investment Narrative Recap

To own Victoria’s Secret, you need to believe its brand refresh, product improvements and omnichannel push can offset margin pressures from tariffs and store traffic. The raised 2025 sales outlook and stronger Q4 guidance reinforce near term momentum in execution, while the biggest risk still sits with external cost pressures and promotions squeezing profitability. Wells Fargo’s upgrade signals improving sentiment, but does not fundamentally change those core risks.

The most relevant update here is the higher full year 2025 net sales guidance to US$6.45 billion to US$6.48 billion, following Q3 sales of US$1,472 million and a narrower net loss of US$37 million. This combination of modest top line improvement and reduced losses ties directly into the key catalyst of better product, marketing and inventory discipline, which investors will watch closely to see if it can consistently offset tariffs and mall related headwinds.

Yet even as sales guidance improves, investors should still be aware of the pressure that rising tariffs and promotions could place on margins and...

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 42% downside to its current price.

Exploring Other Perspectives

Five fair value estimates from the Simply Wall St Community span a wide range from US$23.84 to about US$78.36, underscoring how differently individual investors view Victoria’s Secret. Against that spread, the recent lift in 2025 sales guidance highlights how much investors may be anchoring their views on whether product and marketing gains can outrun tariff and traffic risks over time.

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.

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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.

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