Why Victoria's Secret Stock Roared Today

• Victoria's Secret bushed net this morning.

• The lingerie institution inactive mislaid money, and tariffs aren't helping matters much.

• 10 stocks we similar amended than Victoria's Secret & Co. ›

Victoria's Secret (NYSE: VSCO) banal surged 17% done 10:05 a.m. ET Friday greeting aft beating connected earnings.

Analysts forecast the lingerie retailer would suffer $0.59 per stock connected $1.4 cardinal successful income successful its Q3 2025. Victoria's Secret really mislaid lone $0.27 (adjusted for one-time items), and income approached $1.5 billion.

Victoria's Secret grew its income 9% twelvemonth implicit twelvemonth successful Q3, with the Victoria's Secret, PINK, and Beauty brands each contributing to growth. Same-store income unsocial grew a beardown 8%. CEO Hillary Super called the results "outstanding" -- capable truthful that she raised guidance for the remainder of the year.

Victoria's Secret inactive mislaid wealth successful the quarter. "Adjusted" net aside, Victoria's Secret reported a nett nonaccomplishment of $0.46 per stock successful the quarter. That was amended than expected, and amended than the $0.71 Victoria's Secret mislaid 1 twelvemonth ago.

But it was inactive a loss.

Turning to guidance, full-year income are present trending supra $6.45 billion, and absorption says its adjusted net this twelvemonth are besides looking amended than expected. Not counting the outgo of tariffs, Victoria's Secret thinks it could gain anyplace from $2.40 to $2.65 per stock this year.

Subtract $90 cardinal successful tariff costs, and disagreement by Victoria's Secret's 80 cardinal shares outstanding, and this leaves the institution with astatine slightest $1.28 per stock successful nett this year. On a $49 stock, that works retired to a price-to-earnings ratio of astir 38.

That's expensive, but adjacent without the tariffs, Victoria's Secret banal would outgo 20 times earnings, and beryllium increasing astatine lone 9%. Either mode you look astatine it, I fear, Victoria's Secret banal is inactive excessively costly to buy.

Before you bargain banal successful Victoria's Secret & Co., see this:

The Motley Fool Stock Advisor expert squad conscionable identified what they judge are the 10 champion stocks for investors to bargain now… and Victoria's Secret & Co. wasn’t 1 of them. The 10 stocks that made the chopped could nutrient monster returns successful the coming years.

Consider erstwhile Netflix made this database connected December 17, 2004... if you invested $1,000 astatine the clip of our recommendation, you’d person $556,658!* Or erstwhile Nvidia made this database connected April 15, 2005... if you invested $1,000 astatine the clip of our recommendation, you’d person $1,124,157!*