Victoria’s Secret (NYSE: VSXY), the storied woman’s lingerie provider, has shrugged off its struggles of recent years by re-embracing a sexy image.
It has even changed its stock ticker to reflect that identity. In June it shifted to VSXY from VSCO. “Sexy has always been part of our DNA,” said CEO Hillary Super. “What’s changed is how intentionally we are owning it.” The company is emphasizing growth in bras and undergarments in addition to the teen brand Pink.
Around 2018, the company began taking serious flak for its airbrushed image of female perfection: thin, buxom women. Consumer taste moved toward body positivity, inclusivity, and comfort. But the company failed to move with it.
After the arrest of sexual predator Jeffrey Epstein in 2019, it became clear that he was closely tied to Leslie Wexner, CEO of L Brands, which owned Victoria’s Secret. Also, Epstein allegedly had claimed he was a recruiter for the brand.
The famed television fashion show for Victoria’s Secret was taken off the air in 2019, and the brand was spun off as a separate company from L Brands in 2021. The stock plummeted 76% from August 2021 to July 2025. But Super, who took over in August 2024, has executed a tremendous turnaround. Victoria’s Secret shares have tripled over the past year.
The former Anthropologie CEO has reinstalled the fashion show and overseen the creation of a strong toehold on TikTok. And then there’s the focus on sex appeal. “I think the new management has been maniacally focused on elevating the storytelling and what made Victoria’s Secret appealing,” said Guggenheim analyst Simeon Siegel, according to Barron’s.
Strong earnings
Earnings tell the story. Victoria Secret’s revenue ascended 10% in the second quarter from a year earlier. Brassieres drove the increase, with a sales rise in the mid-teens percentage, the company said. Though it doesn’t specify the numbers for bras, they account for the biggest chunk of its sales, and are the No. 1 seller in the global bras category.
Also in the second quarter, net income jumped to $183 million from $16 million. And Victoria’s Secret raised its full-year 2026 estimates for sales and adjusted operating income.
But some investors and analysts argued that all those earnings numbers weren’t enough. They noted that the 10% net sales increase for the second quarter represents a slowdown from the 15% climb in the first quarter. And the comparable sales appreciation of 9% in the second quarter from a year ago trails the 13% gain in the first quarter.
So some traders and investors thought it was time to sell. The stock plunged 13% last Thursday, the day second-quarter earnings were released. But that still left shares more than 200% higher than a year ago.
Investors’ reaction to the earnings were “shaped more by expectations than reported results,” Siegel said.
Whatever the outlook for the stock, the company itself is looking pretty.
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