Victoria’s Secret stock price experienced a significant drop on Thursday, continuing a downward trend from its late-2025 highs. This decline followed the company’s fourth-quarter earnings report, which revealed a less optimistic sales outlook for the current year. While Q4 results showed year-over-year growth in both net income and revenue, investors were disappointed by the projected minimal sales increase for 2025.
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Victoria’s Secret reported fourth-quarter sales of $2.1 billion, a 1% increase compared to the previous year. This result exceeded analyst expectations tracked by Visible Alpha. CEO Hillary Super highlighted positive holiday-quarter sales growth across Victoria’s Secret, PINK, and the company’s beauty segment. Despite this positive quarterly performance, the company’s guidance for 2025 projected net sales between $6.2 billion and $6.3 billion, representing a mere 0.3% year-over-year increase. This contrasts with the 0.9% growth achieved in 2024 and aligns with the current consensus estimate of $6.24 billion from Visible Alpha.
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In an official press release, Victoria’s Secret acknowledged the challenging macroeconomic environment and declining consumer confidence. The company’s forecast anticipates a gradual improvement in the economic landscape throughout the year, coupled with the successful execution of strategies aimed at boosting sales in both North American and international markets. This cautious outlook contributed to the negative investor sentiment, driving the stock price down more than 8% on Thursday to just over $20 per share. The stock has plummeted approximately 20% year-to-date and is significantly below its December highs of nearly $49.
Despite the disappointing sales forecast, Victoria’s Secret reported positive growth in net income for the fourth quarter. Net income reached $193 million, up from $181 million in the same period last year. While this improvement demonstrates some financial strength, it was overshadowed by concerns about the company’s future revenue growth potential in a challenging economic climate. The substantial decline in stock price reflects investor apprehension regarding Victoria’s Secret’s ability to navigate these headwinds and deliver robust sales performance in the coming year.
