Victoria's Secret shares have risen to a three-year high. Is it time to buy them?

The papers of the owner of the Victoria's Secret lingerie brand jumped almost 21% in trading on December 5 and reached the highest level in 3.5 years. The company posted its highest quarterly sales growth since 2021 after scaling back sales, The Wall Street Journal reported. The brand has improved significantly since a change in leadership a year ago, returning to the image that made the brand world-famous.

The stock price of Victoria's Secret, owner of the lingerie brand Victoria's Secret, was climbing to $50.22 in trading Friday, its highest level since Ma 2022.

Investors reacted enthusiastically to the company's quarterly report. Victoria's Secret reduced the number of promotions and began selling full-price merchandise, The Wall Street Journal reported, a strategy that led to a 9.2% increase in revenue in the third quarter ended Nov. 1 to $1.47 billion, while analysts had expected $1.41 billion. The brand hasn't had such a high rate of sales growth in more than four years, the WSJ noted. Comparable sales rose 8% after only 4% in the previous quarter.

Victoria's Secret recorded a net loss of $37 million (or $0.46 per share) in the third quarter, compared to a loss of $56 million ($0.71 per share) a year earlier. Adjusted loss amounted to $0.27 per share, while analysts, according to FactSet, predicted almost twice as much - in the amount of $0.59, writes WSJ.

The positive dynamics continued at the beginning of the fourth quarter, which allowed the company to raise its sales and profit forecasts for the second time in a row, WSJ notes. In the current period, Victoria's Secret expects adjusted earnings per share in the range of $2.2 to $2.45 and revenue of $2.17 billion to $2.2 billion. This is above the market forecast for revenue ($2.17 billion), but slightly lower for profit ($2.23 per share), WSJ noted.

Victoria's Secret also raised its full-year forecast: expected adjusted earnings per share are now $2.4-2.65, while earlier the company planned to get $1.8-2.2. The revenue forecast has been increased from $6.33-6.41 billion to $6.45-6.48 billion. It already takes into account losses from duties, which are estimated at about $90 million for the year, while previously expected effect of $100 million, specifies WSJ.

Sales growth in the third quarter was among shoppers of all income groups - both in households earning less than $50,000 per year and in the over $200,000 segment. Attendance at Victoria's Secret and Pink stores averaged higher than mall traffic, and the brands themselves attracted an increasing number of consumers between the ages of 18 and 24. "Our brands are resonating and becoming more relevant," Victoria's Secret CEO Hillary Super said in a press release.

Super also confirmed that it is still in talks with two activist investors, Barington Capital Group and Australian billionaire Brett Blandy, who have acquired stakes in the company and are seeking changes to the board of directors.

When Hillary Super took over Victoria's Secret in September 2024, it was a mess, The Wall Street Journal reported. Sales of the brand had been falling for more than two years, with new competitors entering the market, including Kim Kardashian's Skims. Unlike her previous boss, Super was not afraid of Victoria's Secret's associations with sexuality.

"The [previous CEO's] decisions were made under the influence of fear," she told The Wall Street Journal . In 2024, the company relaunched its legendary fashion show, making the model lineup more diverse but not abandoning the traditional "angels."

In April 2025, the company announced a new strategy called "Path to Potential", to execute which Super appointed new presidents across all key areas.

Victoria's Secret shares have risen 16% since the beginning of the year. But analysts' opinions on the stock diverge, MarketWatch shows: the most popular recommendation is "hold" (four Hold ratings), while the advice to "buy" and "sell" is evenly split (two Buy and one Overweight vs. two Underweight and one Sell). The Wall Street consensus price target is $36.3, down 12.7% from its closing price on December 4.

This article was AI-translated and verified by a human editor