Victoria’s Secret (NYSE: $VSCO) is a global retailer that sells sleepwear, loungewear, athletic wear, intimate apparel, beauty products, and accessories, with a focus on trendy fashion for women. On Friday, December 5, 2025, it released its Q3 fiscal 2025 results to a positive market reaction. Let us dive into those results.
Victoria’s Secret Q3 Results
For Q3, Victoria’s Secret reported net sales of $1.472 billion, a 9% YoY increase, and above estimates of $1.41 billion. Total comparable sales were up 8% YoY, beating estimates of 3%. It reported a GAAP net loss of $37 million or $0.46 per share, an improvement from the $46 million loss or $0.71 reported last year.
The company reported an adjusted net loss of $22 million or $0.27 per share, beating forecasts of a $0.59 per share loss. It reported a GAAP operating loss of $19 million, a massive improvement from the $47 million reported last year. Its adjusted operating income hit breakeven, beating forecasts of a $35-$55 million loss.
The company’s gross margin expanded 170 basis points, driven by strong full-price sales and lower promotional costs. Commenting on the results, CEO Hillary Super stated, “We delivered a standout third quarter, with outperformance on net sales and earnings per share, exceeding the high-end of our guidance.”
Full-Year Forecast
For the full year, the company now forecasts net sales of $6.45 billion to $6.48 billion, a massive improvement from its previous guidance of $6.33 billion to $6.41 billion.
It now forecasts an adjusted operating income of $350-$375 million, up from the previous forecast of $270-$320 million. The company now projects an adjusted EPS of $2.40 to $2.65, up from the previous forecast of $1.80 to $2.20. This new outlook reflects an estimated net tariff impact of around $90 million.
Victoria’s Secret (VSCO) Market Performance
Following the release of the Q3 results, VSCO shares rose 17.99% to $49.05 at the close of trading. Year to date, the stock is up 18.42%, and over the past month, it is up 31.04%.
Analysts are cautious about the future of the stock, and they forecast an overall hold rating. The analysts forecast an average price of $36.50, which is 12.20% downside based on the last closing price. They forecast a wide range of prices, with a high of $47 and a low of $17.
Is Victoria’s Secret A Buy in 2025?
Analysts highlight the company’s strong execution across geographies and channels. They note that top-line growth and margin expansion beat expectations. However, with a trailing P/E ratio of 22.61, some analysts rightly conclude that the stock is still a bit too expensive. As such, the analysts’ overall rating of hold could potentially be the best course of action in the medium term.
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