Kylie Cemented The Buzz. Victoria’s Secret Stock Has Soared This Year As Wall Street Raises Its Bets.

Kylie Jenner may have captured the spotlight in a $50 million diamond-studded bra this week, but Victoria's Secret is attracting a different kind of attention on Wall Street.

Shares of Victoria's Secret & Co. have soared this year, with analysts at Barclays and Morgan Stanley raising their price targets this week as the lingerie retailer's turnaround gathers momentum.

Its year-to-date rally, which is close to 70% on Thursday, reflects growing investor confidence in a business that has spent years trying to rebuild sales, sharpen its brand identity and regain market share.

The latest analyst moves come ahead of the holiday shopping season, a critical period for retailers, and follow a stronger-than-expected second quarter in which Victoria's Secret reported double-digit revenue growth.

Barclays raised its price target on Victoria's Secret to $112 from $106 on October 20, maintaining an Overweight rating on the stock.

Morgan Stanley followed a similar bullish view, increasing its target to $104 from $101 on October 19 while also retaining its Overweight rating. The two targets represent potential gains of approximately 27% and 18%, respectively, from Tuesday's $88.01 closing price.

The upgrades were not simply reactions to celebrity appearances on the runway. Analysts have pointed to improvements in the company's merchandise strategy, customer engagement and efforts to return Victoria's Secret to its traditional brand identity.

Barclays highlighted the event's resemblance to the company's earlier fashion shows, while Morgan Stanley noted stronger marketing execution and the opportunity to translate greater consumer interest into purchases. Still, the broader Wall Street outlook is more measured than those two bullish targets suggest.

According to MarketBeat's analyst data, eight analysts rate Victoria's Secret a Buy and seven recommend holding the stock. The average 12-month price target stands at $92, leaving considerably less upside than the most optimistic forecasts.

The company's latest financial results help explain why investors have become more interested in the stock. Victoria's Secret reported second-quarter revenue of $1.61 billion, up 10% from $1.46 billion a year earlier. Comparable sales, which measure performance at established stores and comparable selling channels, increased 9%.

Adjusted operating income more than doubled to $124 million from $55 million, while adjusted earnings reached $0.95 per share, compared with $0.33 a year earlier. Both adjusted operating income and earnings exceeded the company's previous guidance.

The retailer also reported a significant increase in regular-price sales, suggesting that customers were responding to its merchandise without relying as heavily on discounts.

These results prompted Victoria's Secret to raise its full-year financial outlook in September. The company now expects 2026 revenue between $7.10 billion and $7.18 billion, compared with its previous forecast of $7.03 billion to $7.13 billion.

The company's fashion show is increasingly functioning as more than a marketing event. This year's production featured Jenner, widely known as "King Kylie," making her Victoria's Secret runway debut in a Fantasy Bra valued at $50 million.

Created by jewelry house Jacob & Co., the piece featured 4,410 natural diamonds, including a 75.54-carat yellow diamond. It marked the return of the Fantasy Bra after an eight-year absence.

Jenner, whose Instagram following exceeds 380 million, offered the retailer access to an enormous social media audience. Victoria's Secret Chief Creative Officer Adam Selman described her as a "cultural powerhouse" in an interview with Vogue.

But the more significant commercial development may be what Victoria's Secret did with the merchandise featured in the show.

According to analyst commentary reported by Barron's, the retailer made approximately 17 times as many runway-featured products available for purchase as in previous years, with prices roughly 10% higher.

The move reflects an effort to connect the show's publicity directly with purchases, rather than relying primarily on brand exposure.

It also fits the company's broader strategy of emphasizing products that customers are willing to buy at regular prices.

For investors, the question is whether that increased availability and higher pricing can translate into stronger holiday-quarter sales and improved profit margins.

Much of Victoria's Secret's recovery has taken place under Chief Executive Officer Hillary Super, who took over in September 2024. The company has been working to reconnect with its core lingerie customers while expanding the appeal of its PINK brand, swimwear and activewear offerings.

Victoria's Secret previously held more than 30% of the core underwear market, but its share had fallen to approximately 20%, according to analyst estimates cited by Barron's.

That leaves significant room for potential market-share gains if its recent sales momentum continues. The retailer has also been reducing promotional activity and investing more heavily in product development and marketing.