Victoria’s Secret (VSCO) grabbed Wall Street’s attention with better-than-expected fiscal second-quarter results. Also, the clothing and beauty retailer raised its full-year revenue outlook, which signals rising confidence in its turnaround strategy. VSCO stock opened 10% higher on Thursday’s regular trading session.
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Earnings Beat and Sales Momentum
For the second quarter of Fiscal 2025, Victoria’s Secret reported adjusted earnings per share of $0.33, more than double analysts’ consensus of $0.13. Also, revenue came in at $1.46 billion, topping forecasts of $1.41 billion and marking a 3% year-over-year increase.
Comparable sales rose 4%, driven by growth across both the Victoria’s Secret and PINK brands in North America and internationally.
International sales surged 21.8% year-over-year to $227.8 million, while North American store sales rose 3.1% to $824.8 million. However, VSCO’s direct-to-consumer sales declined 5.5%, reflecting ongoing challenges in digital engagement and e-commerce conversion.
2025 Guidance Lifted
Victoria’s Secret raised its full-year revenue outlook to a range of $6.33 billion to $6.41 billion, up from its previous guidance of $6.2 billion to $6.3 billion. The consensus estimates stand at $6.24 billion.
Further, the company maintained its adjusted operating income forecast of $270 million to $320 million.
It is worth noting that the updated outlook now includes about $100 million in expected tariff costs for 2025, $50 million more than the previous guidance.
For the fiscal third quarter, VSCO expects sales to range between $1.39 billion and $1.42 billion, which is above Wall Street’s forecast of $1.36 billion. Further, the company anticipates a net loss per share between $0.55 and $0.75, compared with the analysts’ expectations of a loss of $0.56 per share.
Looking ahead, Chief Financial and Operating Officer Scott Sekella said, “Although we recognize that the macro environment remains uncertain, we are excited about the product newness and customer experiences we have planned for the second half of the year.”
Is VSCO a Good Stock to Buy?
Turning to Wall Street, VSCO stock has a Hold consensus rating based on three Buys, five Holds, and three Sells assigned in the last three months. At $22.09, the average Victoria’s Secret stock price target implies a 10.35% downside risk.
