Why Shares of Victoria's Secret Were Pulling Back Today

By Jeremy Bowman – Mar 5, 2026 at 12:41PM ESTKey PointsVictoria's Secret beat estimates on the top and bottom lines, but margins fell.The stock has surged over the last year, but investors seem to think it was overbought. Shares of Victoria's Secret (VSCO 16.55%) were moving lower today as a better-than-expected earnings report wasn't enough to keep up the earlier momentum in the stock. While revenue growth was strong, the company's margins compressed. As a result, the stock was down 11.2% as of 11:51 a.m. ET. Image source: Getty Images. Did expectations outrun Victoria's Secret? Victoria's Secret's results were strong, but the stock may have been overbought heading into the earnings report as it had more than doubled over the last year. Still, the results bode well for the company's long-term growth. Comparable sales jumped 8% in the quarter, a strong pace for any retailer, which was an improvement from the first three quarters of the year. Overall revenue rose 8% to $2.27 billion, ahead of expectations at $2.23 billion, and adjusted operating income was up 5% to $315.8 million, which excluded $119.6 million asset impairment for the Adore Me brand. On the bottom line, adjusted earnings per share rose from $2.60 to $2.77, beating the consensus at $2.53. CEO Hilary Super called the fourth-quarter report as "exceptional," and said the company is entering 2026 "from a position of strength." ExpandNYSE: VSCOVictoria's Secret & Co.Today's Change(-16.55%) $-9.93Current Price$50.08Key Data PointsMarket Cap$4.8BDay's Range$50.03 - $56.4052wk Range$13.76 - $66.89Volume6.7MAvg Vol2.2MGross Margin36.30% What's next for Victoria's Secret Looking ahead, the company sees revenue of $1.49 billion-$1.525 billion, ahead of the consensus at $1.42 billion and an 11% increase from the quarter a year ago. For the full year, it expects more modest growth, calling for full-year revenue of $6.85 billion-$6.95 billion, which is up 6% and compares to the consensus at $6.77 billion. Overall, Victoria's Secret appears to be in good shape in spite of the pullback. The women's intimates company now trades at a price-to-earnings ratio of 24, which is expensive for an apparel stock, but it has earned a premium. Read NextDec 5, 2025 •By Rich SmithWhy Victoria's Secret Stock Roared TodayAug 28, 2025 •By Billy DubersteinWhy Victoria's Secret Rallied TodayAug 29, 2024 •By Billy DubersteinWhy Victoria's Secret Stock Fell TodayAug 16, 2024 •By Eric VolkmanWhy Victoria's Secret Stock Was Soaring This WeekAug 14, 2024 •By Jeremy BowmanWhy Victoria's Secret Stock Was Climbing TodayMar 7, 2024 •By Steve SymingtonWhy Victoria's Secret Stock Plummeted TodayAbout the AuthorJeremy Bowman has been a contributing Motley Fool stock market analyst, covering technology, consumer goods, and macroeconomic trends since 2011.

Before The Motley Fool, Jeremy was a newspaper reporter, restaurant manager, and English teacher abroad. He holds a bachelor’s degree in English from Colorado College and a master’s degree in business administration from American University. One of his Motley Fool headlines was briefly featured on Late Night with Stephen Colbert.TMFHoboX@TMFBowmanStocks MentionedVictoria's Secret & Co.NYSE: VSCO$50.08(-16.55%)-$9.93*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.