Victoria’s Secret & Company’s VSXY PINK grew at a high-single-digit rate, marking its fifth consecutive quarter of growth, with increasing strength across its core categories, including bras, panties and apparel. The company sees significant opportunity to build on this momentum through the back half and beyond, with PINK representing the focus of its next strategic pillar. Efforts to sharpen PINK’s identity are gaining traction, as the brand builds a clearer personality, stronger brand codes and a deeper connection with customers.
The company’s renewed confidence in PINK is supported by signs of stronger customer resonance. Management said that it has a clearer understanding of what customers want from PINK: products that are comfortable, expressive and connected to meaningful moments. The approach starts with PINK’s established icons, which are being refreshed through new silhouettes, fabrics, colors and fashion. This keeps the core familiar while continuing to introduce newness and maintain customer interest.
PINK is using customer insights to create new growth opportunities, with Marshmallow serving as a strong example. The product addresses demand for all-day comfort while remaining fun and fashionable. Its four new frames, with features like easy sizing, wireless support and soft fabrication, were launched digitally through a broad network of creators. The combination drove outsized results following the launch, reinforcing management’s view that bras can become an increasingly important growth engine for PINK. Apparel has also delivered eight consecutive quarters of growth, with management expecting intimates and apparel to reach an approximately 50-50 mix over time.
Overall, PINK’s stronger customer resonance, progress across key product categories and continued brand development give management confidence in the opportunity ahead. With multiple product categories contributing to growth and significant runway still available, the company sees room to build further on PINK’s recent momentum.
The Zacks Rundown for VSXY
Shares of this Zacks Rank #1 (Strong Buy) company have gained 57.1% in the past three months against the industry’s decline of 9.5%.
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From a valuation standpoint, VSXY trades at a forward price-to-earnings ratio of 14.01, higher than the industry’s average of 12.73.
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The Zacks Consensus Estimate for VSXY’s current and next fiscal year earnings implies a year-over-year rise of 57.3% and 23.8%, respectively.
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Other Stocks to Consider
Some other top-ranked stocks have been discussed below:
FIGS, Inc. FIGS operates as a direct-to-consumer healthcare apparel and lifestyle company in the United States and internationally. At present, FIGS carries a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for FIGS’s current fiscal-year sales and earnings implies growth of 18.2% and 89.5%, respectively, from the year-ago figures. FIGS has delivered a trailing four-quarter earnings surprise of 201.8%, on average.
Fossil Group, Inc. FOSL designs, develops, markets, and distributes consumer fashion accessories in the United States, Europe, Asia, and internationally. At present, FOSL carries a Zacks Rank of 2.
The Zacks Consensus Estimate for FOSL’s current fiscal-year sales indicates a decline of 4%, while the same for earnings indicates growth of 96.7% from the year-ago figures. FOSL delivered a trailing four-quarter negative earnings surprise of 236.2%, on average.
Boot Barn Holdings, Inc. BOOT operates specialty retail stores in the United States and internationally. At present, Boot Barn carries a Zacks Rank of 2.
The consensus estimate for Boot Barn’s current fiscal-year sales and earnings implies growth of 15.7% and 22.6%, respectively, from the year-ago figures. BOOT delivered a trailing four-quarter earnings surprise of 11.4%, on average.
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Victoria's Secret & Co. (VSXY): Free Stock Analysis Report
Boot Barn Holdings, Inc. (BOOT): Free Stock Analysis Report
Fossil Group, Inc. (FOSL): Free Stock Analysis Report
FIGS, Inc. (FIGS): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).