Victoria’s Secret Earnings Delayed as Stock (VSCO) Struggles YTD

Victoria's Secret & Co. (NYSE: VSCO) finds itself grappling with a confluence of headwinds that have significantly impacted its stock performance. As of this morning, VSCO is trading at $22.20, down 2.29% in yesterday's session and 45% year-to-date.

This downward trajectory reflects a complex interplay of factors, ranging from cybersecurity breaches and takeover defenses to evolving consumer preferences and the inherent volatility of the retail landscape. The question now is whether Victoria's Secret can successfully navigate these challenges and reignite investor confidence.

Recent events have undoubtedly contributed to the stock's struggles. The cybersecurity breach in late May, which forced the temporary shutdown of corporate systems and the U.S. website, shook investor confidence. While preliminary first-quarter results showed net sales of $1.35 billion and adjusted operating income of $32 million, exceeding analyst expectations, the delayed earnings report amplified uncertainty.

The adoption of a “poison pill” strategy to thwart a potential takeover by BBRC International, an Australian investment firm, further underscores the challenges facing Victoria's Secret. While the defense mechanism is intended to protect the company from opportunistic buyers, it also signals vulnerability and a lack of confidence in its ability to independently drive shareholder value.

The move, valid for one year, allows existing shareholders to purchase additional shares at a 50% discount if any investor exceeds a 15% stake, effectively making a hostile takeover prohibitively expensive. While this may buy the company time to execute its turnaround strategy, it also raises questions about its long-term independence and strategic direction.

Looking to Wall Street for clues, and the average price target of $22.64 remains on par with current price action, with a low target of $15 and a high of $32, indicating a wide range of possible outcomes.

Following 2024, where the VSCO price gained more than 50% was always likely to be tricky, although few would have predicted such a sudden shift in sentiment as 2025 has progressed.