An analyst has identified a new driver for Victoria's Secret's stock: weight-loss products

Needham recommended that investors buy shares of lingerie retailer Victoria’s Secret. He believes that the popularity of weight-loss drugs is a long-term driver of the company’s growth. After losing weight, customers may need smaller-sized lingerie, and the desire to feel sexier can sustain demand for Victoria’s Secret products.

Needham Investment Bank issued its first rating on Victoria's Secret shares and immediately recommended buying them, according to Barron’s.

The target price for the retailer's stock is $106, which implies upside potential of more than 21% from its closing price on October 16. On that day, during the main trading session, Victoria's Secret's stock price fell 3.5% to $87.3.

During morning trading in New York on October 19, stock prices rose by about 1.6%.

Needham analyst Tom Nikich attributes Victoria's Secret's long-term growth to the trend toward rising sales of weight-loss products, according to Barron’s.

As their body types change, consumers may need smaller-sized clothing in which they want to feel “sexier,” which could potentially prompt them to buy Victoria’s Secret products, according to Nikich, as reported by Barron’s.

So far, the popularity of GLP-1 drugs has had a “minimal impact” on the retailer’s sales, said its CEO, Hillary Super, during a conference call with analysts. She noted that the company has observed only minor shifts toward smaller sizes, and among new female customers, these changes may also be linked to the age of the company’s target audience—people aged 18–24. However, the company continues to monitor the trend, Super said.

Following the release of its second-quarter 2026 results, Victoria’s Secret reported a 10% year-over-year increase in revenue to $1.61 billion and an almost threefold increase in adjusted earnings to $0.95 per share. These results allowed the company to raise its revenue forecast for the full fiscal year to $7.1–7.18 billion. This means that Victoria’s Secret could post its highest annual sales in seven years, Bloomberg noted.

Nikich sees further potential for upward revisions to the forecasts. He believes the retailer is in the early stages of a “compelling” multi-year transformation that began when Super took over as CEO two years ago.

A Needham analyst notes: The company previously held more than 30% of the North American lingerie market, but its share subsequently fell to 20%. Nikich believes that regaining lost market share and expanding the PINK brand, as well as the swimwear and athletic apparel lines, could drive annual sales growth in the mid-to-high single-digit percentage range over the next few years. He forecasts that in five years, earnings per share could reach $9.50—twice the forecast for 2026 ($4.45–4.70).

Since the start of the year, Victoria’s Secret’s stock price has jumped 61%. Most of the gain occurred in early June. At that time, the company reported a 15% year-over-year increase in revenue for the first fiscal quarter—to $1.56 billion—which exceeded analysts’ expectations. Following the release of its earnings report on June 2, the stock rose 47.5%.

This earnings report followed the repositioning announced by Super in May. The company is returning to the "sex sells" concept in an effort to restore the brand's reputation and win back customers, Bloomberg reported at the time.

Wall Street generally views the company’s outlook positively: eight analysts recommend buying its stock, six believe it’s a hold, and one recommends selling, according to MarketWatch. The average price target is $93.6, which is 7.2% higher than the closing price on October 16.