Victoria's Secret Trades Above Its Historical Median

Victoria's Secret & Co. (VSXY) has reported faster growth, wider margins, and stronger earnings expectations, but its valuation remains rich at 14.13X forward 12-month earnings, above the industry's 12.18X multiple and its five-year median of 9.14X. Investors must weigh whether the operating recovery is strong enough to justify a higher multiple, considering growth levers beyond the core bra category, but also tariffs, higher marketing investment, and discretionary-demand risk. The company has raised its fiscal 2026 net sales guidance to $7.10-$7.18 billion, implying growth of 8%-10% from fiscal 2025, with projected earnings growth of 56.3% for the current fiscal year.