Does the VSCO 2026 Sales Forecast Signal a Major Turnaround?

Victoria’s Secret & Co. VSCO delivered a strong performance in the fiscal fourth quarter of 2025, surpassing expectations and signaling improving business momentum. The company witnessed year-over-year growth in both its net sales and comparable sales. Following this performance, the company issued a fiscal 2026 outlook that points to a continued turnaround. For fiscal 2026, management expects net sales of $6.85-$6.95 billion, implying 5% to 6% growth compared with $6.55 billion reported in fiscal 2025.

A key factor supporting this expected growth is the company’s continued expansion in international markets, which management views as a major long-term opportunity. In fiscal 2026, the company anticipates double-digit growth in its international business as it strengthens its presence in existing markets, while also entering new regions. In addition, Victoria’s Secret plans to further capitalize on digital and social commerce channels to extend its global reach and engage more effectively with customers worldwide.

The company is also implementing a coordinated global strategy that aligns product development, marketing initiatives, and brand storytelling. This approach is designed to maintain a consistent brand identity across markets while also allowing flexibility to introduce exclusive local products tailored to regional consumer preferences. Such initiatives are expected to enhance brand relevance and deepen customer engagement in international markets.

Alongside its geographic expansion, the company is reinforcing its position as a leader in bras by placing this category back at the core of the Victoria’s Secret brand. By strengthening its focus on bras and improving operational capabilities, the company aims to drive product leadership and support long-term growth. These strategic initiatives suggest Victoria’s Secret’s fiscal 2026 outlook could mark a meaningful step in the company’s turnaround.

The Zacks Rundown for VSCO

Shares of this Zacks Rank #1 (Strong Buy) company have gained 62.4% in the past six months against the industry’s decline of 2.4%.

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From a valuation standpoint, VSCO trades at a forward price-to-earnings ratio of 13.30X, lower than the industry’s average of 16.18X.

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The Zacks Consensus Estimate for VSCO’s current and next fiscal year earnings implies a year-over-year rise of 15.7% and 19.5%, respectively.

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Other Stocks to Consider

Some other top-ranked stocks have been discussed below:

Deckers Outdoors Corporation DECK together with its subsidiaries, designs, markets, and distributes footwear, apparel, and accessories for casual lifestyle use and high-performance activities in the United States and internationally. At present, Deckers sports a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for DECK’s current fiscal-year sales and earnings indicates growth of 8.9% and 8.5%, respectively, from the year-ago figures. DECK delivered a trailing four-quarter earnings surprise of 36.9%, on average.

Tapestry, Inc. TPR provides accessories and lifestyle brand products in North America, Greater China, rest of Asia, and internationally. At present, TPR flaunts a Zacks Rank of 1.

The consensus estimate for TPR’s current fiscal-year sales and earnings implies growth of 11.2% and 26.7%, respectively, from the year-ago figures. TPR has delivered a trailing four-quarter earnings surprise of 12.8%, on average.

American Eagle Outfitters, Inc. AEO operates as a multi-brand specialty retailer in the United States and internationally. At present, AEO carries a Zacks Rank of 2 (Buy).

The Zacks Consensus Estimate for AEO’s current fiscal-year sales and earnings indicates growth of 4.6% and 16.7%, respectively, from the year-ago figures. American Eagle delivered a trailing four-quarter earnings surprise of 37.6%, on average.

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American Eagle Outfitters, Inc. (AEO): Free Stock Analysis Report

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This article originally published on Zacks Investment Research (zacks.com).

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