Victoria's Secret (VSCO) Is Up 18.7% After Raising 2025 Sales Outlook And Narrowing Losses

• Victoria's Secret & Co. has reported its third-quarter 2025 results, with sales rising to US$1,472 million and net loss easing to US$37 million, while also issuing fourth-quarter guidance and lifting its full-year 2025 sales outlook to a range of US$6.45 billion to US$6.48 billion.
• The combination of higher sales, narrower losses, and an upgraded full-year forecast signals management’s growing confidence in the company’s ongoing brand and operational reset.
• With full-year sales guidance raised above prior expectations, we’ll now assess how this updated outlook influences Victoria’s Secret’s investment narrative.

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Victoria's Secret Investment Narrative Recap

To own Victoria’s Secret today, you need to believe the brand reset and omnichannel focus can translate rising sales into consistent profitability, despite tariff pressure and mall exposure. The latest quarter’s higher revenue and narrower loss support that thesis in the near term, while the key catalyst remains execution on merchandising and digital growth. The biggest immediate risk is that rising costs and promotional intensity offset these topline gains; this update does not remove that concern.

The raised full year 2025 net sales guidance to US$6.45 billion to US$6.48 billion is the clearest link to the current catalyst, because it ties management’s expectations directly to improving demand trends and operational progress. It also raises the bar for inventory, pricing, and store productivity, which are crucial if the company is to absorb tariff headwinds and avoid margin pressure should consumer spending soften.

Yet behind the improving outlook, investors should be aware of how higher tariff exposure could still compress margins if...

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 36% downside to its current price.

Exploring Other Perspectives

Five members of the Simply Wall St Community value Victoria’s Secret between US$23.84 and US$108.96, highlighting sharply different views on the company’s potential. When you weigh those ranges against the company’s raised sales outlook and ongoing tariff and mall traffic risks, it becomes clear why exploring several viewpoints can be useful before forming your own stance.

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 2 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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