Victoria's Secret & Co. (VSCO) shares, alongside other specialty retailers, jumped significantly on January 5, 2026. This rally followed a White House announcement confirming a one-year delay on planned tariff increases for consumer goods.
The planned tariff hikes were originally set to take effect on New Year’s Day. These tariffs would have increased costs across the entire retail sector.
Retailers such as Victoria's Secret faced two primary options. They could absorb the increased costs, which would directly hurt profitability. Alternatively, they could pass the costs to consumers via higher prices, potentially reducing overall sales.
The delay provided immediate relief to the sector. Investors met the news with optimism.