The quarterly results for Victoria's Secret & Co. (NYSE:VSCO) were released last week, making it a good time to revisit its performance. The result was positive overall - although revenues of US$1.4b were in line with what the analysts predicted, Victoria's Secret surprised by delivering a statutory profit of US$0.40 per share, modestly greater than expected. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Taking into account the latest results, Victoria's Secret's twelve analysts currently expect revenues in 2025 to be US$6.07b, approximately in line with the last 12 months. Statutory per-share earnings are expected to be US$1.77, roughly flat on the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of US$6.01b and earnings per share (EPS) of US$1.70 in 2025. So the consensus seems to have become somewhat more optimistic on Victoria's Secret's earnings potential following these results.

The analysts have been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 10% to US$23.73. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values Victoria's Secret at US$30.00 per share, while the most bearish prices it at US$13.00. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would also point out that the forecast 1.8% annualised revenue decline to the end of 2025 is better than the historical trend, which saw revenues shrink 2.3% annually over the past five years By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 4.9% per year. So it's pretty clear that, while it does have declining revenues, the analysts also expect Victoria's Secret to suffer worse than the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Victoria's Secret's earnings potential next year. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Victoria's Secret's revenue is expected to perform worse than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Victoria's Secret analysts - going out to 2027, and you can see them free on our platform here.

Plus, you should also learn about the 1 warning sign we've spotted with Victoria's Secret .

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.