Is the VSCO 2026 Revenue Projection Indicating a Significant Recovery?

Victoria’s Secret & Co. Reports Strong Q4 Results and Optimistic 2026 Outlook

Victoria’s Secret & Co. (VSCO) posted impressive results for its fiscal fourth quarter of 2025, outperforming analyst expectations and indicating renewed business strength. The company achieved year-over-year increases in both total net sales and comparable sales. Building on this momentum, management has released a positive forecast for fiscal 2026, projecting net sales between $6.85 billion and $6.95 billion—a 5% to 6% rise from the $6.55 billion reported in 2025.

International Growth and Digital Expansion

One of the main drivers behind this anticipated growth is Victoria’s Secret’s ongoing push into international markets, which leadership sees as a significant long-term growth avenue. For fiscal 2026, the company expects its international segment to expand at a double-digit rate, fueled by deeper penetration in current markets and entry into new territories. Additionally, Victoria’s Secret (VSCO+1.67%) is leveraging digital and social commerce platforms to broaden its global footprint and connect more effectively with consumers worldwide.

Unified Global Strategy and Brand Focus

The company is rolling out a cohesive global approach that synchronizes product innovation, marketing campaigns, and brand storytelling. This strategy aims to ensure a unified brand image across all markets, while also allowing for the introduction of exclusive products tailored to local tastes. These efforts are expected to strengthen brand relevance and foster deeper engagement with international customers.

Reaffirming Leadership in the Bras Category

Alongside its global expansion, Victoria’s Secret is reinforcing its leadership in the bras segment by making it central to the brand’s identity once again. By sharpening its focus on bras and enhancing operational efficiency, the company seeks to drive product innovation and support sustainable growth. These strategic moves suggest that the company’s 2026 outlook could mark a pivotal phase in its ongoing turnaround.

VSCO Stock Performance and Valuation

Over the past six months, shares of this Zacks Rank #1 (Strong Buy) company have surged 62.4%, in stark contrast to the industry’s 2.4% decline.

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From a valuation perspective, VSCO (VSCO+1.67%) currently trades at a forward price-to-earnings ratio of 13.30, which is below the industry average of 16.18.

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Consensus estimates from Zacks suggest that VSCO’s earnings will grow by 15.7% this fiscal year and by 19.5% in the next.

Image Source: Zacks Investment Research

Other Top-Ranked Stocks to Watch

Here are a few additional stocks with strong Zacks rankings:

• Deckers Outdoors Corporation (DECK): Designs and markets footwear, apparel, and accessories for both casual and performance use globally. Deckers currently holds a Zacks Rank of 1.
  Zacks estimates project 8.9% sales growth and 8.5% earnings growth for the current fiscal year, with an average earnings surprise of 36.9% over the past four quarters.
• Tapestry, Inc. (TPR): Offers accessories and lifestyle products across North America, Greater China, and other international markets. Tapestry also holds a Zacks Rank of 1.
  Consensus forecasts indicate 11.2% sales growth and 26.7% earnings growth for the current fiscal year, with an average earnings surprise of 12.8% over the last four quarters.
• American Eagle Outfitters, Inc. (AEO): Operates as a multi-brand specialty retailer in the U.S. and internationally, and currently carries a Zacks Rank of 2 (Buy).
  Zacks projects 4.6% sales growth and 16.7% earnings growth for the current fiscal year, with an average earnings surprise of 37.6% over the last four quarters.

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