Key Points
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Victoria’s Secret stock fell despite a substantial earnings beat in fiscal Q2.
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The company’s sales came in slightly below expectations in the period.
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The company raised its full-year sales and adjusted operating income targets.
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Victoria’s Secret (NYSE: VSXY) stock got hit with a significant pullback this week after the company published result for the second quarter of its current fiscal year. Its share price declined 14% from its level at the end of the previous week’s market close.
On Thursday, Victoria’s Secret published results for Q2 of its 2026 fiscal year — a period that closed Aug. 1. Despite the sell-off this week, the company’s share price is still up 39.5% across 2026’s trading.
Victoria’s Secret stock sold off after quarterly sales miss
Victoria’s Secret recorded non-GAAP (adjusted) earnings per share of $0.95 on revenue of $1.61 billion. While adjusted earnings per share came in $0.18 higher than expectations, sales were roughly $10 million short of the average Wall Street analyst target despite rising 10% year over year. With the company’s big earnings beat being heavily driven by tariff rebates, investors focused more on the sales miss in the quarter.
What’s next for Victoria’s Secret?
With its fiscal Q2 report, Victoria’s Secret raised its full-year sales guidance to between $7.1 billion and $7.18 billion — up from previous guidance for sales between $7.03 billion and $7.13 billion. Meanwhile, the average analyst estimate had targeted sales of $7.14 billion for the year — so the midpoint of the new guidance range is exactly in line with that target.
Victoria’s Secret also raised its adjusted operating target to between $560 million and $590 million — up from its previous target for adjusted operating income between $550 million and $580 million. Hitting the midpoint of its new target range would mean delivering annual growth of roughly 43% over last year’s adjusted operating income of $403 million.
With a strong earnings beat in fiscal Q2 and increases for full-year sales and adjusted operating income, the latest business update from Victoria’s Secret actually looked very strong — but expectations were already high heading into the report.
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Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Victoria’s Secret & Co. The Motley Fool has a disclosure policy.
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