We came across a bullish thesis on Victoria’s Secret & Co. on TickerTrends’s Substack. In this article, we will summarize the bulls’ thesis on VSCO. Victoria’s Secret & Co.’s share was trading at $59.22 as of February 10th. VSCO’s trailing and forward P/E were 29.01 and 23.36 respectively according to Yahoo Finance.
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Victoria’s Secret & Co. operates as a specialty retailer of women’s intimate, and other apparel and beauty products worldwide. VSCO has delivered a powerful turnaround, with the stock up more than 100% since the positive note published on October 15, 2025, shifting the narrative from early recovery to a more demanding phase defined by execution under higher expectations.
The initial rebound was driven by a resurgence in brand visibility and social interest, particularly following the return of the Victoria’s Secret Fashion Show, which translated into strong Q4 performance and guidance that validated the recovery thesis. However, as the stock has rerated and sentiment has improved, the bar for further upside has risen meaningfully.
Current data suggests the brand is still growing, though momentum appears to be moderating. Consumer Interest and Global Usage remain up double digits year over year, but the pace of acceleration has softened compared to earlier in the turnaround. Social Interest is still positive but has trended lower in recent months, and website traffic, while up year over year, has flattened toward the lower end of its recent range. This points to normalization rather than contraction, an important distinction given elevated expectations.
Management continues to lean into cultural relevance to sustain growth. Collaborations with Hailey Bieber and global K-pop group TWICE demonstrate a clear strategy to align the brand with modern, social-native attention dynamics and younger, international consumers. While these partnerships have not yet driven a visible spike in social activity, they lay the groundwork for a potential second wave of momentum.
Overall, Victoria’s Secret is a far healthier brand than it was two years ago, and the turnaround has proven durable. The investment case now hinges on management’s ability to re-accelerate demand through social and cultural execution, with social engagement emerging as the key leading indicator for the next leg of upside.
Previously, we covered a bullish thesis on Victoria’s Secret & Co. (VSCO) by Nishant Chandra in January 2025, which highlighted the DCF-based undervaluation, debt reduction potential, new CEO leadership, and brand modernization efforts. VSCO’s stock price has appreciated by approximately 59.62% since our coverage. TickerTrends shares a similar thesis but emphasizes social momentum, cultural collaborations, and execution under higher expectations.
Victoria’s Secret & Co. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 43 hedge fund portfolios held VSCO at the end of the third quarter which was 44 in the previous quarter. While we acknowledge the risk and potential of VSCO as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than VSCO and that has 10,000% upside potential, check out our report about this cheapest AI stock.
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Disclosure: None.
