Victoria's Secret & Co. (VSCO) received an analyst upgrade to a 'buy' rating on January 9, 2026. The upgrade cites meaningfully improved earnings quality. The core intimates business is gaining market share and demonstrating strong demand.
The PINK brand acts as a real growth driver, delivering low-double-digit sales growth. International sales scaled faster than expected, growing 34% year-over-year through a partner-led model.
Strong financial execution expanded the gross margin by 170 basis points to 36.5%. VSCO achieved this by pulling back on promotions and improving pricing power. Average unit retail grew 3%, signaling a healthy turnaround without sacrificing consumer demand.