Victoria's Secret Shares Climb on Strong Q3 and Raised Outlook
The retailer's stock jumped after beating earnings estimates and lifting its full-year forecast, offering fresh evidence its brand overhaul is taking hold.
Shares of Victoria's Secret & Co. (NYSE: VSCO) climbed nearly 6% on Thursday after the company posted third-quarter results that significantly outpaced Wall Street's expectations and raised its financial outlook for the full year, signaling that its comprehensive brand turnaround is gaining momentum.
The lingerie and apparel retailer reported a third-quarter adjusted loss of $0.27 per share, a result that was more than 50% better than the consensus estimate of a $0.59 per share loss. According to its official release, revenue grew 9% year-over-year to $1.472 billion, also topping analyst forecasts and demonstrating solid consumer demand.
Driving investor optimism, Victoria's Secret substantially lifted its full-year 2025 adjusted earnings guidance. The company now expects to earn between $2.40 and $2.65 per share, a significant increase from its previous forecast of $1.80 to $2.20. This confident outlook suggests management sees sustained momentum heading into the crucial holiday shopping season and beyond.
The strong performance provides tangible evidence that the company's multi-year 'Path to Potential' strategic plan is resonating with consumers. The initiative has focused on revamping the brand's historically narrow image, promoting inclusivity in its marketing and product lines, and refining its apparel and beauty assortments to reverse a multi-year slide.
Thursday's rally to over $44 per share builds on a significant recovery for the stock, which has rebounded sharply from a 52-week low of $13.76. The move pushed the shares comfortably past the median Wall Street analyst price target of approximately $35.60, a level that could see upward revisions from analysts in the coming days as they digest the strong report and upgraded forecast.
While the company did not provide specific commentary in the initial release, the headline numbers point to successful execution across its core Victoria's Secret and PINK brands. The results stand in contrast to a mixed retail environment where many apparel companies have struggled with shifting consumer spending habits and promotional pressures.
Investors will now be closely watching the company’s fourth-quarter performance for confirmation that the turnaround has staying power. The holiday season will serve as a key test of whether the revitalized brand can continue to attract both new and returning customers in a competitive market.