Can Victoria's Secret's Path to Potential Sustain Broad-Based Growth?

Victoria's Secret & Co. (VSXY) reported 10% sales growth to $1.61 billion in Q2 FY2026, marking its fifth consecutive quarter of positive comparable sales. The company demonstrated broad-based growth across its Victoria's Secret, PINK, and Beauty brands, with bras growing mid-teens, PINK up high single digits for the fifth consecutive quarter, and Beauty extending its growth streak to 12 quarters. Customer acquisition improved with high single-digit new customer growth. However, VSXY trades at a forward P/E of 15.18, above the industry average of 11.83, and carries a Zacks Rank #3 (Hold) rating.