Victoria's Secret & Co. VSCO has accelerated its digital transformation to better connect with younger consumers, a shift clearly reflected in its fourth-quarter fiscal 2025 performance.
The company reported revenues of $2.27 billion for the quarter, up 7.8% year over year, with growth supported by stronger digital engagement and customer acquisition, particularly among younger demographics. Management emphasized that sharper brand positioning and increased digital storytelling are central to sustaining this momentum.
A key driver of this strategy is the repositioning of the PINK brand as a digitally native, socially driven lifestyle brand for 18-24 year olds. In the fourth quarter, PINK delivered high-single-digit sales growth while also achieving double-digit average unit retail expansion, reflecting reduced promotions and higher full-price selling. Brand consideration and equity among its target age group reached their highest levels in several years, signaling improving resonance with Gen Z shoppers.
Digital-led product launches and culturally relevant campaigns are reinforcing this engagement. Management highlighted that PINK’s recurring Wednesday drops and collaborations helped drive urgency and repeat visits, while social-first campaigns generated significant reach. One flagship campaign alone surpassed 79 million social views, underscoring how entertainment-driven content is translating into measurable consumer interest and demand.
Mobile apps are another critical pillar of VSCO’s digital ecosystem. During the quarter, app downloads increased 25% company-wide, with PINK app downloads rising even faster at 50%. Apps now account for roughly one-third of total digital sales, offering personalized experiences, early access to drops and exclusive content that deepen loyalty and frequency of engagement.
These digital initiatives are producing tangible commercial outcomes. VSCO grew its overall customer count at a low-single-digit rate, led primarily by customer acquisition, while spend per customer increased at a mid-single-digit pace. With stronger digital penetration, rising social engagement and disciplined execution, the company is converting brand relevance into sustained growth among young shoppers.
Here’s What Latest Metrics Say About VSCO
The VSCO stock has skyrocketed 193.6% in the past year compared with the industry’s growth of 18.9%.
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Victoria's Secret’s forward 12-month price-to-earnings ratio of 15.71 reflects a lower valuation than the industry’s average of 16.43.
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The Zacks Consensus Estimate for VSCO’s current fiscal-year sales implies year-over-year growth of 5.2%, while the same for earnings per share suggests an increase of 7%. For the next fiscal year, the consensus estimate indicates a 4.2% rise in sales and 19% growth in earnings.
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Victoria's Secret currently sports a Zacks Rank #1 (Strong Buy).
Other Key Picks
We have highlighted three other top-ranked stocks, namely, FIGS Inc. FIGS, Deckers Outdoor Corporation DECK and Boot Barn Holdings, Inc. BOOT.
FIGS is a direct-to-consumer healthcare apparel and lifestyle brand, and it currently flaunts a Zacks Rank #1. FIGS delivered a trailing four-quarter earnings surprise of 187.5%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for FIGS’ current financial-year sales indicates growth of 11.4% from the year-ago reported numbers.
Deckers is a leading designer, producer and brand manager of innovative, niche footwear and accessories. It has a Zacks Rank #2 (Buy) at present.
The Zacks Consensus Estimate for Deckers’ current fiscal-year earnings and sales indicates growth of 8.5% and 8.9%, respectively, from the year-ago actuals. DECK delivered a trailing four-quarter average earnings surprise of 36.9%.
Boot Barn operates as a lifestyle retail chain devoted to western and work-related footwear, apparel and accessories. It currently carries a Zacks Rank of 2.
The Zacks Consensus Estimate for Boot Barn’s current fiscal earnings and sales suggests growth of 26% and 17.7%, respectively, from the year-ago actuals. Boot Barn delivered a trailing four-quarter average earnings surprise of 4.9%.
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Deckers Outdoor Corporation (DECK): Free Stock Analysis Report
Boot Barn Holdings, Inc. (BOOT): Free Stock Analysis Report
FIGS, Inc. (FIGS): Free Stock Analysis Report
Victoria's Secret & Co. (VSCO): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).