Victoria’s Secret & Co. VSXY is strengthening its international platform through iconic brands, localized marketing and an omnichannel network. Its Victoria's Secret, PINK and Beauty businesses address varied customer needs, while shared infrastructure and partner relationships support overseas expansion. Product innovation, distinctive storytelling and market-specific engagement are helping extend its domestic strategy internationally and diversify growth.
The strategy delivered encouraging results in second-quarter fiscal 2026. International net sales increased 20% year over year, while international retail comparable sales rose in the low teens. Excluding the reporting shift of European digital sales from the direct channel to international, revenues still grew 10%, indicating healthy underlying demand.
China remained the company's leading international growth market. Digital sales benefited from social selling, while retail comparable sales accelerated as VSXY entered the second half. The performance suggests that localized digital engagement and physical stores are reinforcing each other as Victoria's Secret expands awareness and customer relationships in the region.
Europe represents another key growth avenue. VSXY began fulfilling European digital orders through its new regional distribution center in third-quarter fiscal 2025, strengthening regional fulfillment. Across international markets, flagship openings, local content and marketing, and the Victoria's Secret Fashion Show provide additional tools to deepen engagement.
Management expects international sales to grow approximately 20% in fiscal 2026. VSXY raised its companywide net sales outlook to $7.10-$7.18 billion and adjusted operating income forecast to $560-$590 million. Tougher comparisons may moderate international growth, while franchise shipment timing, tariffs and uncertain consumer spending remain risks. Even so, momentum in China, European digital expansion and a presence in approximately 70 countries support the company's long-term global growth prospects.
VSXY’s Price Performance, Valuation & Estimates
Over the past six months, Victoria’s Secret’s stock has risen 57.7% against the Zacks Retail - Apparel and Shoes industry’s 12.4% decline.
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From a valuation standpoint, the company trades at a trailing price-to-sales ratio of 0.88, below the industry’s average of 1.29. It has a Value Score of A.
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The Zacks Consensus Estimate for VSXY’s current and next financial years’ earnings implies year-over-year growth of 56.3% and 22.7%, respectively. Earnings estimates for fiscal 2026 and 2027 have been revised downward by 4 cents and 7 cents, respectively, over the past seven days.
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VSXY’s Zacks Rank & Key Picks
Victoria’s Secret currently carries a Zacks Rank #3 (Hold).
Genesco Inc. GCO is a Nashville-based specialty retailer and branded company. It sells footwear and accessories through retail stores. The company flaunts a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Genesco’s current fiscal-year earnings indicates growth of 62.1% from the year-ago actuals. GCO delivered a trailing four-quarter average earnings surprise of 11.2%.
Designer Brands Inc. DBI designs, produces and retails footwear and accessories. It offers shoes, boots, sandals, sneakers, socks, handbags and accessories. It currently carries a Zacks Rank #2.
The Zacks Consensus Estimate for Designer Brands’ current fiscal-year earnings and sales suggests growth of 225% and 0.6%, respectively, from the year-ago actuals. DBI delivered a trailing four-quarter average earnings surprise of 108.1%.
FIGS, Inc. FIGS is an apparel company focused on the healthcare industry. Its offerings include lab coats, jackets, footwear, bags, socks and other accessories used by healthcare professionals. The company carries a Zacks Rank #2 at present.
The Zacks Consensus Estimate for FIGS’ current financial-year earnings and sales suggests growth of 89.5% and 19.7%, respectively, from the year-ago actuals. FIGS delivered a trailing four-quarter average earnings surprise of 201.8%.
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Victoria's Secret & Co. (VSXY): Free Stock Analysis Report
Genesco Inc. (GCO): Free Stock Analysis Report
Designer Brands Inc. (DBI): Free Stock Analysis Report
FIGS, Inc. (FIGS): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).