Victoria’s Secret (VSCO): Assessing Valuation After Fashion Show Signals Early Progress Under New CEO

This year’s Victoria’s Secret (VSCO) Fashion Show has drawn attention, not just for its signature flair but also because it is the first major initiative crafted entirely by new CEO Hillary Super. The event was widely anticipated as a signpost for the company’s ongoing turnaround strategy.

See our latest analysis for Victoria's Secret.

Momentum has been building for Victoria's Secret, especially after the highly publicized Fashion Show under new leadership. The stock’s 59% share price gain over the past 90 days stands out as a sharp reversal from earlier in the year. Its one-year total shareholder return remains positive despite a challenging retail landscape.

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But with shares climbing so sharply in recent months, the question remains: Is Victoria’s Secret truly trading at a discount, or has the recent optimism already been priced in, leaving limited upside for new investors?

Most Popular Narrative: 21.6% Overvalued

Victoria's Secret is currently trading well above what the most followed narrative considers fair value. With the last close at $30.28, this crowd-driven view puts fair value much lower, hinting the stock may have sprinted too far ahead of the fundamentals. Here is what the consensus narrative suggests is driving the price disconnect. Read on for a direct quote that gets to the heart of this high-stakes valuation call.

The ongoing transformation of Victoria's Secret toward inclusivity, body positivity, and enhanced storytelling continues to resonate with younger customers and drive new customer acquisition, especially among the 18-44 demographic, supporting sustained revenue and market share growth.

Read the complete narrative.

Want to know the key reasons behind this red-hot valuation? The most optimistic projections rest on an ambitious turnaround strategy and major shifts in who’s buying the brand. The earnings outlook and a future profit multiple usually reserved for industry leaders underpin this narrative’s bold conclusion. Curious which financial numbers and market trends justify placing such a premium on VSCO shares? Dig deeper to reveal the dramatic assumptions behind the headline fair value.

Result: Fair Value of $24.90 (OVERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent tariff pressures or a sharp drop in mall traffic could quickly challenge Victoria's Secret's rebound and undermine optimistic projections for the brand.

Find out about the key risks to this Victoria's Secret narrative.

Build Your Own Victoria's Secret Narrative

If the consensus doesn’t align with your viewpoint or you’d rather dig into the numbers yourself, you can craft your own Victoria’s Secret story in just a few minutes. Do it your way

Prefer to form your own view? Our platform makes it easy to explore a stock's fundamentals and create your own narrative in minutes.

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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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