Barclays Boosts PT on Victoria's Secret & Co. Stock to $27

Barclays lifted Victoria's Secret & Co.'s (VSCO) price objective to $27 from $23 and maintained an "Overweight" rating. The company posted a Q2 2025 beat, but the earnings outlook was reiterated. Barclays noted progress in Victoria's Secret & Co.'s brand initiatives and comparable sales growth in North America and globally. Net sales rose 3% to $1.459 billion in Q2 2025, and the full-year outlook for net sales was raised to $6.330 billion - $6.410 billion.

Victoria's Secret & Co. (VSCO) reported strong second-quarter 2025 results, with sales and operating income exceeding expectations. The company also raised its full-year 2025 sales guidance. Barclays, in response to the positive performance, lifted VSCO's price objective to $27 from $23 and maintained an "Overweight" rating [1].

Q2 2025 Highlights

- Net sales for the second quarter of 2025 totaled $1.459 billion, a 3% increase compared to the same period in 2024, and above the company's previously communicated guidance range of $1.380 billion to $1.410 billion [1].
- Total comparable sales for the second quarter of 2025 increased by 4% [1].
- Operating income for the second quarter of 2025 was $41 million, compared to $62 million in the second quarter of 2024 [1].
- Net income for the second quarter of 2025 was $16 million, or $0.20 per diluted share, compared to $32 million, or $0.40 per diluted share, for the same period in 2024 [1].

Full Year and Third Quarter 2025 Outlook

- VSCO raised its full-year 2025 net sales outlook to $6.330 billion to $6.410 billion, compared to its previous guidance of $6.2 billion to $6.3 billion [1].
- Adjusted operating income for the full year 2025 is expected to be in the range of $270 million to $320 million [1].
- For the third quarter of 2025, VSCO forecasts net sales to be in the range of $1.390 billion to $1.420 billion, and adjusted operating loss to be in the range of $35 million to $55 million [1].

Barclays' Analysis

Barclays noted progress in VSCO's brand initiatives and comparable sales growth in North America and globally. The investment bank highlighted the company's ability to drive sales growth despite tariff headwinds and its focus on product innovation and storytelling [1].

Conclusion

Victoria's Secret & Co.'s Q2 2025 results demonstrate the company's resilience and growth potential. With a strong brand and disciplined execution, VSCO is well-positioned to meet its full-year 2025 targets. Barclays' positive outlook reflects investor confidence in the company's strategic direction and execution.

References

[1] Victoria's Secret & Co. (2025). Victoria’s Secret & Co. Reports Second Quarter 2025 Results. Retrieved from https://www.victoriassecretandco.com/news-releases/news-release-details/victorias-secret-co-reports-second-quarter-2025-results