Jonna Kim, an analyst from TD Cowen, reiterated the Hold rating on Victoria’s Secret. The associated price target remains the same with $22.00.
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Jonna Kim has given his Hold rating due to a combination of factors influencing Victoria’s Secret’s performance. The company reported strong results for the second quarter of 2025, surpassing expectations and providing a promising sales outlook for the third quarter. However, the earnings per share were in line with market expectations, and the company’s operating income guidance was maintained despite a slight increase in sales projections, primarily due to the impact of additional tariffs.
Despite the positive sales momentum, there are concerns about the challenges posed by tougher year-over-year comparisons in the second half of the year and the increased tariff impact. While there are encouraging signs such as growth in the intimates category and a reduction in promotions, the elevated expectations before earnings and the potential difficulty in achieving the anticipated acceleration in trends contribute to the Hold rating. The analyst suggests that if the current momentum continues, especially with upcoming events like the fashion show and holiday season, there could be potential upside, but execution remains a key factor to watch.
In another report released on August 21, UBS also maintained a Hold rating on the stock with a $21.00 price target.