How Victoria’s Secret finally managed to get its sexy back
After years of struggle, Victoria’s Secret shares have been hitting new highs this week.
Last month, Victoria’s Secret announced that it would change its ticker to VSXY, announcing that “sexy has always been part of our DNA.” Investors had a lot to cheer about when the ticker changed over on Tuesday, as the company also reported a strong earnings beat and substantially hiked its full-year guidance. The stock soared 50% that day to a new high, and has hovered around that point since.
VSXY’s vertical move likely came as a relief for CEO Hillary Super, who has been trying to defend the almost 50-year-old brand against ongoing activist pressure and reverse the yearslong sales slump she was greeted with when taking the helm in 2024. Super’s turnaround efforts have borne fruit, with comparative sales ticking up pretty consistently since the third quarter of 2024, and rising 13% year on year in the latest quarter.
Runway to growth
The brand — which was spun off from Bath & Body Works (then L Brands) in 2021 and made the shocking decision to ditch its iconic angels the same year — saw comparable store sales slump for nine straight quarters starting in Q1 2022, marred by accusations of “woke-washing” on the one hand, and an exposé documentary raising questions around its founder’s ties with Jeffrey Epstein and separate controversies on the other.
However, since Super took the job she’s seemed intent on restoring the brand’s former glory, starting with a renewed emphasis on “sexy,” reviving its iconic fashion show in May after a six-year hiatus, and trimming its non-core assets to focus on its main bra offering. And, despite higher regular-price selling and fewer promotions, results are showing across the board, per the latest earnings call: management noted new customer growth in the young 18 to 24 age range and a strong sales boost from both the under $50,000 and above $200,000 income cohorts.
