Victoria's Secret posts strong Q2 growth driven by bra and international sales, but shares remain under pressure as analysts debate whether the turnaround is fully priced into the current valuation.
Q2 earnings beat and raised guidance, but mixed analyst reactions and Q3 loss guidance create uncertainty about whether the turnaround is priced in.
Victoria's Secret & Co. (NYSE:VSXY) reported a 10% rise in net sales to $1.611 billion for Q2 2026, with adjusted EPS nearly tripling to $0.95. Despite raised full-year guidance and strong product performance, the stock faces mixed analyst sentiment as management warns of a potential Q3 loss and rising tariff pressures in the fourth quarter.
The company expects a Q3 EPS range of a $0.09 loss to a $0.01 gain, driven by higher marketing investments for a new docuseries and increased incentive compensation.