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Victoria's Secret Crushes Q3 Expectations, Analysts Rush to Raise Price Targets

MarketDash Editorial Team
8 hours ago
Victoria's Secret delivered a standout third quarter with sales jumping 9% and losses coming in far better than expected. The lingerie retailer raised its full-year guidance significantly, prompting three major Wall Street analysts to boost their price targets on the stock.

Victoria's Secret & Co (VSCO) just turned in the kind of quarter that makes Wall Street pay attention. The lingerie and beauty retailer reported better-than-expected third-quarter results on Friday and raised its full-year guidance well above estimates, sending analysts scrambling to update their forecasts.

The numbers tell a compelling story. Victoria's Secret posted a quarterly loss of 27 cents per share, which sounds bad until you realize analysts were bracing for a 59-cent loss. That's beating expectations by more than half. Revenue came in at $1.472 billion, comfortably ahead of the $1.410 billion consensus estimate.

Perhaps more impressive than the quarterly beat was management's confidence in raising guidance. The company lifted its fiscal 2025 adjusted EPS outlook from a range of $1.80-$2.20 to $2.40-$2.65. On the revenue side, the forecast jumped from $6.330 billion-$6.410 billion to $6.450 billion-$6.480 billion.

CEO Hillary Super didn't hold back in her enthusiasm: "We delivered a standout third quarter, with outperformance on net sales and earnings per share, exceeding the high-end of our guidance. Net sales increased 9% over last year, driven by strength across Victoria's Secret, PINK and Beauty, and supported by momentum across channels and geographies. These outstanding results reflect disciplined execution of our Path to Potential strategy. Building on the third quarter's outperformance as well as the solid start to our fourth quarter, we are raising our full year outlook and are well positioned for a successful holiday season and finish to our fiscal 2025."

The market liked what it saw. Victoria's Secret shares climbed 2.4% to $50.22 on Monday.

Analyst Price Target Updates

The strong results prompted three Wall Street analysts to adjust their price targets upward:

  • Telsey Advisory Group analyst Dana Telsey maintained a Market Perform rating while raising the price target from $45 to $50.
  • UBS analyst Mauricio Serna kept his Buy rating and increased the price target from $46 to $60.
  • Goldman Sachs analyst Brooke Roach maintained a Neutral rating but raised the price target from $32 to $47.

The coordinated price target increases reflect growing confidence in Victoria's Secret's turnaround strategy and its ability to drive growth across its various brands and channels heading into the critical holiday shopping season.

Back to News

Victoria's Secret Crushes Q3 Expectations, Analysts Rush to Raise Price Targets

MarketDash Editorial Team
8 hours ago
Victoria's Secret delivered a standout third quarter with sales jumping 9% and losses coming in far better than expected. The lingerie retailer raised its full-year guidance significantly, prompting three major Wall Street analysts to boost their price targets on the stock.

Victoria's Secret & Co (VSCO) just turned in the kind of quarter that makes Wall Street pay attention. The lingerie and beauty retailer reported better-than-expected third-quarter results on Friday and raised its full-year guidance well above estimates, sending analysts scrambling to update their forecasts.

The numbers tell a compelling story. Victoria's Secret posted a quarterly loss of 27 cents per share, which sounds bad until you realize analysts were bracing for a 59-cent loss. That's beating expectations by more than half. Revenue came in at $1.472 billion, comfortably ahead of the $1.410 billion consensus estimate.

Perhaps more impressive than the quarterly beat was management's confidence in raising guidance. The company lifted its fiscal 2025 adjusted EPS outlook from a range of $1.80-$2.20 to $2.40-$2.65. On the revenue side, the forecast jumped from $6.330 billion-$6.410 billion to $6.450 billion-$6.480 billion.

CEO Hillary Super didn't hold back in her enthusiasm: "We delivered a standout third quarter, with outperformance on net sales and earnings per share, exceeding the high-end of our guidance. Net sales increased 9% over last year, driven by strength across Victoria's Secret, PINK and Beauty, and supported by momentum across channels and geographies. These outstanding results reflect disciplined execution of our Path to Potential strategy. Building on the third quarter's outperformance as well as the solid start to our fourth quarter, we are raising our full year outlook and are well positioned for a successful holiday season and finish to our fiscal 2025."

The market liked what it saw. Victoria's Secret shares climbed 2.4% to $50.22 on Monday.

Analyst Price Target Updates

The strong results prompted three Wall Street analysts to adjust their price targets upward:

  • Telsey Advisory Group analyst Dana Telsey maintained a Market Perform rating while raising the price target from $45 to $50.
  • UBS analyst Mauricio Serna kept his Buy rating and increased the price target from $46 to $60.
  • Goldman Sachs analyst Brooke Roach maintained a Neutral rating but raised the price target from $32 to $47.

The coordinated price target increases reflect growing confidence in Victoria's Secret's turnaround strategy and its ability to drive growth across its various brands and channels heading into the critical holiday shopping season.

    Victoria's Secret Crushes Q3 Expectations, Analysts Rush to Raise Price Targets - MarketDash News