Wall Street Debates Whether Victoria's Secret & Co.'s Turnaround Is Already Priced In
Victoria’s Secret & Co. (VSXY) reported strong second-quarter results on September 3, 2026, with a 10% increase in net sales to $1.611 billion and adjusted diluted earnings per share nearly tripling to $0.95 from $0.33. Management raised full-year guidance across key metrics, citing strong performance in the bra business and international markets, which saw a 20% rise to $273.4 million. Analysts are divided on whether these results have already been reflected in VSXY’s stock price. Morgan Stanley, Barclays, and JPMorgan maintained or raised their price targets while keeping Overweight ratings, citing durable turnaround momentum and temporary headwinds rather than structural issues. However, BMO Capital initiated coverage at Market Perform with a $80 target, arguing much of the recovery is already priced in after last year’s re-rating. UBS also lowered its target to $87 while maintaining Neutral, noting that management's initiatives have improved long-term growth prospects but suggesting current valuations may reflect these expectations. Third-quarter guidance shows a sharp decline from recent performance due to higher marketing and SG&A costs.
Topics: analyst ratings retail turnaround strategy