Victoria’s Secret Earnings on Deck – What To Expect From VSCO

Victoria's Secret & Co. (NYSE: VSCO) shares ended Thursday's session at $41.57, down 2.31%, only to jump 2.43% during this morning's pre-market ahead of earnings. The lingerie giant is bracing for its upcoming earnings report, slated for release before the opening bell, against a backdrop of internal strife and strategic brand evolution.

The market anticipates a challenging earnings report, with analysts forecasting an earnings per share (EPS) of -$0.59 for the current quarter. This represents a projected year-over-year decline of ~20% Y/Y, underscoring the pressures facing the company. Revenue is expected to have grown 4.58% on the year to $1.41billion.

VSCO's stock has exhibited considerable volatility over the past year, fluctuating between $13.76 and $48.73. Its beta of 2.34 signals heightened sensitivity to broader market movements, making it a potentially riskier investment compared to its peers.

Technically, VSCO's stock is currently trading above both its 50-day ($40.32) and 200-day ($36.46) simple moving averages (SMAs). This positioning typically suggests a bullish trend, though the looming earnings report and other factors could easily disrupt this pattern.

The recent public dispute with BBRC International PTE Limited, a significant shareholder holding approximately 12.9% of VSCO's shares, has injected uncertainty into the company's outlook. BBRC's demand for the removal of Board Chair Donna James, citing concerns over long tenure and operational effectiveness, has raised corporate governance questions. The call for shareholder representation on the board further complicates the situation.

Victoria's Secret has acknowledged BBRC's proposals and is evaluating the candidacy of Brett Blundy, BBRC’s representative, for a board position. The company has also highlighted potential conflicts of interest and past conduct-related issues associated with BBRC affiliates, suggesting a cautious approach to their demands. VSCO management is keen to highlight the 89% total shareholder return since Hillary Super was appointed as CEO, positioning this as evidence of current positive performance.

Adding another layer to the story, Victoria's Secret launched a designer collaboration with Altuzarra in February 2025. The partnership aims to blend Altuzarra's modern aesthetic with Victoria's Secret's lingerie collections, potentially attracting a broader customer base and enhancing brand prestige. The success of this collaboration remains to be seen, but it signals an effort to revitalize the brand and appeal to new demographics.

The options market is pricing in significant volatility around the earnings release. Implied volatility stands at 78.95%, with an expected price movement of approximately ±12.86% over the next couple of weeks

The combination of boardroom tensions, earnings headwinds, and brand revitalization efforts creates a complex picture for Victoria's Secret. The company's ability to manage internal conflicts while simultaneously executing its strategic initiatives will be crucial in restoring investor confidence.