In a recent development, Barclays has revised its outlook for Victoria's Secret & Co. (NYSE:VSCO), raising the equity's price objective while reiterating an 'Overweight' recommendation. This decision comes on the heels of the company's robust financial showing in the second fiscal quarter of 2025. The brand's strategic initiatives appear to be yielding positive results, contributing to an impressive sales performance. Investors and market watchers are keenly observing VSCO's trajectory as it continues to demonstrate a strong operational comeback, particularly in its core markets and digital channels.
Barclays' recent assessment, reported on August 29, indicates a boost in Victoria's Secret's price target from $23 to $27. This upward revision by the financial institution highlights a vote of confidence in the lingerie retailer's market position and future prospects. While the firm's fiscal Q2 2025 results surpassed expectations, leading to this positive re-evaluation, it's worth noting that the comprehensive earnings forecast for fiscal year 2025 has been held constant. Nevertheless, analysts at Barclays have pointed out the emerging success of Victoria's Secret's brand-focused endeavors, suggesting a positive shift in consumer engagement and market perception.
The company's operational strength in Q2 2025 was evident through consistent comparable sales growth. Both the Victoria's Secret and PINK segments experienced an uplift, extending across North America and global markets, encompassing both physical retail locations and online platforms. This consistent growth trajectory, which intensified in July and continued into August, underscores the brand's revitalized appeal. The financial figures further solidify this narrative, with net sales reaching $1.459 billion for Q2 2025, a noticeable increase from $1.417 billion recorded in the corresponding period of the previous fiscal year.
Looking ahead, Victoria's Secret & Co. has also adjusted its full-year net sales projections upwards. The company now anticipates sales to fall between $6.330 billion and $6.410 billion, an improvement from its earlier guidance of $6.2 billion to $6.3 billion. This revised outlook reflects the strong performance witnessed in the recent quarter and the anticipated continued momentum. The positive adjustment signals management's confidence in the brand's strategic direction and its capacity to sustain growth in a dynamic retail environment.
Barclays' upgraded price target for Victoria's Secret & Co. underscores the company's solid financial performance and the growing positive impact of its brand-building initiatives, signaling a promising outlook for the stock's future valuation.