Victoria's Secret Crushed the Quarter, But These Wall Street Analysts Think the Excitement May Be Overdone

1 hour ago 2

Reuben Gregg Brewer, The Motley Fool

Thu, June 4, 2026 astatine 8:31 AM CDT 4 min read

Victoria's Secret (NYSE:VSCO) is simply a large, well-known retailer that sells women's covering and lingerie. It has been moving connected a concern turnaround for respective years. And it seems similar investors deliberation that the turnaround has happened aft the institution reported first-quarter 2026 earnings. But Wall Street analysts from Jefferies and UBS deliberation the banal has moved excessively far, excessively fast. They mightiness beryllium right.

Victoria's Secret had a bully 4th

To beryllium fair, Victoria's Secret had a precise beardown archetypal 4th successful 2026, contempt consumers becoming progressively budget-conscious. The retailer's income roseate 15%, exceeding management's guidance. Same-store income maturation was besides impressive, astatine 13%. Earnings per stock was $0.56, up from a nonaccomplishment of $0.02 per stock successful the archetypal 4th of 2025.

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The institution besides accrued its full-year guidance. That isn't thing that companies usually bash aft a azygous 4th unless they are highly assured astir the future. So it's not astonishing that investors would respond positively. However, the magnitude of the affirmative absorption was a spot shocking, with the banal gapping higher by implicit 40%.

VSXY information by YCharts

Investors whitethorn beryllium excessively excited astir Victoria's Secret

While Victoria's Secret did person a precise beardown archetypal quarter, the shockingly ample banal beforehand connected the quality has analysts astatine Jefferies and UBS worried. Essentially, the large communicative is that these analysts fearfulness investors person already priced successful each the bully news. Thus, there's small upside accidental ahead. That's not an unreasonable appraisal of the situation.

With specified a ample terms move, it is astir arsenic if Wall Street is saying Victoria's Secret became a caller institution overnight. The remainder of the twelvemonth whitethorn beryllium stronger than the institution expected conscionable 3 months agone erstwhile it archetypal provided 2026 guidance, but immoderate position is needed.

For example, 2026 income are present projected to autumn betwixt $7.03 cardinal and $7.13 billion, up from a scope of $6.85 cardinal to $6.95 billion. That's little than a 3% alteration astatine some the debased and precocious ends. Adjusted operating income is present expected to autumn betwixt $550 cardinal and $580 million, up from a scope of $430 cardinal to $460 million. That's a much awesome change, with nett income jumping astir 28% astatine the debased extremity of the scope and 26% astatine the precocious end.

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