Goldman Sachs Maintains Sell Rating on Victoria’s Secret (VSCO) Stock

On June 4, Goldman Sachs maintained a Sell rating on Victoria’s Secret & Co. (NYSE:VSCO) with a $15 price target. The rating followed VSCO’s preliminary fiscal Q1 2025 results and a security incident that occurred over the Memorial Day weekend, resulting in a temporary shutdown of the company’s websites, corporate systems, and apps. This incident proved especially concerning for analysts since it occurred during a critical retail period.

While Victoria’s Secret & Co. (NYSE:VSCO) restored its e-commerce site, the total impact of the incident on its operations and financials remains uncertain, which caused a delay in the release of the company’s Q1 2025 earnings. The analyst informed investors in a research note that management was unable to access the specific platforms and information required to report the earnings, resulting in a delay.

A middle aged woman in a boutique trying on intimate products.

Although the firm acknowledged the higher-than-anticipated sales and profitability trends in the quarter, the firm believes the security breach “weighs on overall enthusiasm” for the earnings, resulting in a more cautious outlook on Victoria’s Secret & Co.’s (NYSE:VSCO) ability to navigate an “already dynamic operating environment.”

Victoria’s Secret & Co. (NYSE:VSCO) is a women’s intimates, apparel, and beauty products retailer. It operates under the Victoria’s Secret, Victoria’s Secret PINK, and Adore Me brands. The company’s product offerings include sleepwear, loungewear, swimwear, athleisure, lingerie, prestige fragrances, and body care.

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Disclosure: None.