Shares of Victoria's Secret surged 5.7% to $88.72 on August 19 after UBS analyst Jay Sole raised his price target to $95 from $90, citing a dramatic improvement in online demand — a move that snapped six straight sessions of declines and reignited debate over whether the lingerie giant's turnaround has legs. UBS Lifts Victoria's Secret Target to $95 on Surging Web Traffic, but Can Full-Price Selling Really Stick?
Shares of Victoria's Secret jumped 5.7% to $88.72 after UBS raised its price target to $95 from $90 while keeping a Neutral rating — a vote of cautious optimism that snapped six straight sessions of declines. The catalyst: hard data suggesting the retailer's turnaround is accelerating online just weeks before its Q2 earnings report on September 3.
• Website Visits Surged 45%, and That's Real Revenue Signal
Industry data showed total visits to the Victoria's Secret website grew 45% year-over-year in Q2 2026 and accelerated 675 basis points quarter-over-quarter. This isn't vanity traffic. When paired with a lean toward regular-price selling — average unit retail rose mid-single digits in Q1 thanks to fewer promotions and reduced markdowns — more visitors at higher prices means meaningfully more revenue per click. For shareholders, that combination directly widens profit margins without requiring additional stores or headcount.
• The "Promo Detox" Is Paying Off in Hard Dollars
Operating income jumped to $76 million from $20 million in Q1, lifting the operating margin to 4.9% from 1.5%, as higher regular-priced selling and lower promotions offset about $14 million in incremental tariff costs. Management guided Q2 operating income to $90–$100 million, compared to adjusted operating income of $55 million a year earlier , and projected gross margin of roughly 38.5%, representing about 290 basis points of expansion. If the company hits those numbers, it would confirm the brand can grow without relying on discounts — the defining test of any retail turnaround.
• The Bigger Picture: $7 Billion Sales Target Under Tariff Pressure
Victoria's Secret raised its 2026 guidance to net sales between $7.03 billion and $7.13 billion, with adjusted operating income of $550–$580 million. That ambition, though, faces headwinds. Tariffs reduced fiscal 2025 operating income by about $85 million and added roughly $14 million more in Q1 2026 , and higher tariffs on imports are expected to pressure margins for the remainder of the year.
• UBS Says "Neutral" — So What's the Catch? Despite the bullish data, UBS did not upgrade its rating. Morgan Stanley holds an Overweight rating with a $99 target , while Wells Fargo also rates the stock Overweight at $90. At $88.72, the stock sits just 7% below UBS's new target, leaving limited upside unless Q2 results — due in two weeks — deliver another beat. The September 3 earnings call will be the proving ground.