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How Victoria's Secret Is Creating a Stronger Customer Connection?
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Key Takeaways
Victoria's Secret focuses on World Building to create distinct, emotionally resonant brand ecosystems.
VSXY's TWICE Valentine's Day campaign generated more than 2 billion impressions.
VSXY shifts away from heavy discounting, supporting stronger brand appeal and value perception.
Victoria’s Secret & Co. (VSXY - Free Report) remains focused on strengthening customer relationships, reinforcing the business foundation and creating sustainable long-term value. A key component of this strategy is world-building, which involves developing distinct and emotionally resonant brand ecosystems for the Victoria's Secret and PINK brands. These ecosystems align product, marketing, customer experience and visual identity to create a recognizable brand presence.
Victoria’s Secret continued to emphasize agility and cultural relevance in its marketing strategy. Building on the strong response to K-pop group TWICE at its fashion show, the company partnered with the group again for its Valentine’s Day campaign, alongside new offerings in the Wink franchise. The campaign generated more than 2 billion impressions during the Valentine’s Day period, demonstrating the impact of culturally relevant brand engagement.
Additionally, the company is shifting its strategy away from heavy promotions and markdowns, replacing discount-driven offers with more compelling emotional brand messaging. Management believes this approach is creating a healthier, more brand-led business model. Customer response has been positive, as evidenced by strong average unit retail growth, which reflects the strengthening appeal and value perception of the company’s brand propositions.
Victoria’s Secret’s evolving approach reflects a broader transition from transactional retailing toward brand equity creation. By investing in stronger brand narratives and premium customer perception, the company is positioning itself to drive more resilient demand, improve pricing power and support sustainable long-term growth in an increasingly competitive apparel market.
The Zacks Rundown for VSXY
Shares of this Zacks Rank #1 (Strong Buy) company have surged 48.5% in the past six months against the industry’s decline of 5.1%.
Image Source: Zacks Investment Research
From a valuation standpoint, VSXY trades at a forward price-to-earnings ratio of 16.27, higher than the industry’s average of 15.38.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for VSXY’s current and next fiscal year earnings implies a year-over-year rise of 53.7% and 18.9%, respectively.
Image Source: Zacks Investment Research
Other Stocks to Consider
Some other top-ranked stocks have been discussed below:
The Zacks Consensus Estimate for TPR’s current fiscal-year sales and earnings implies growth of 13.8% and 36.3%, respectively, from the year-ago figures. TPR has delivered a trailing four-quarter earnings surprise of 15.6%, on average.
Levi Strauss & Co. (LEVI - Free Report) designs, markets, and sells apparel and related accessories for men, women, and children in the United States and internationally. At present, LEVI carries a Zacks Rank of 2 (Buy).
The Zacks Consensus Estimate for LEVI’s current fiscal-year sales and earnings implies growth of 5.2% and 11.9%, respectively, from the year-ago figures. LEVI has delivered a trailing four-quarter earnings surprise of 21.4%, on average.
Fossil Group, Inc. (FOSL - Free Report) designs, develops, markets, and distributes consumer fashion accessories in the United States, Europe, Asia, and internationally. At present, FOSL carries a Zacks Rank of 2.
The Zacks Consensus Estimate for FOSL’s current fiscal-year sales indicates a decline of 4.9%, while the same for earnings indicates growth of 87.6% from the year-ago figures. FOSL delivered a trailing four-quarter negative earnings surprise of 381.8%, on average.
View the Zacks #1 Rank List
Image: Bigstock
How Victoria's Secret Is Creating a Stronger Customer Connection?
Key Takeaways
Victoria’s Secret & Co. (VSXY - Free Report) remains focused on strengthening customer relationships, reinforcing the business foundation and creating sustainable long-term value. A key component of this strategy is world-building, which involves developing distinct and emotionally resonant brand ecosystems for the Victoria's Secret and PINK brands. These ecosystems align product, marketing, customer experience and visual identity to create a recognizable brand presence.
Victoria’s Secret continued to emphasize agility and cultural relevance in its marketing strategy. Building on the strong response to K-pop group TWICE at its fashion show, the company partnered with the group again for its Valentine’s Day campaign, alongside new offerings in the Wink franchise. The campaign generated more than 2 billion impressions during the Valentine’s Day period, demonstrating the impact of culturally relevant brand engagement.
Additionally, the company is shifting its strategy away from heavy promotions and markdowns, replacing discount-driven offers with more compelling emotional brand messaging. Management believes this approach is creating a healthier, more brand-led business model. Customer response has been positive, as evidenced by strong average unit retail growth, which reflects the strengthening appeal and value perception of the company’s brand propositions.
Victoria’s Secret’s evolving approach reflects a broader transition from transactional retailing toward brand equity creation. By investing in stronger brand narratives and premium customer perception, the company is positioning itself to drive more resilient demand, improve pricing power and support sustainable long-term growth in an increasingly competitive apparel market.
The Zacks Rundown for VSXY
Shares of this Zacks Rank #1 (Strong Buy) company have surged 48.5% in the past six months against the industry’s decline of 5.1%.
Image Source: Zacks Investment Research
From a valuation standpoint, VSXY trades at a forward price-to-earnings ratio of 16.27, higher than the industry’s average of 15.38.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for VSXY’s current and next fiscal year earnings implies a year-over-year rise of 53.7% and 18.9%, respectively.
Image Source: Zacks Investment Research
Other Stocks to Consider
Some other top-ranked stocks have been discussed below:
Tapestry, Inc. (TPR - Free Report) provides accessories and lifestyle brand products in North America, Greater China, the rest of Asia, and internationally. At present, TPR flaunts a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for TPR’s current fiscal-year sales and earnings implies growth of 13.8% and 36.3%, respectively, from the year-ago figures. TPR has delivered a trailing four-quarter earnings surprise of 15.6%, on average.
Levi Strauss & Co. (LEVI - Free Report) designs, markets, and sells apparel and related accessories for men, women, and children in the United States and internationally. At present, LEVI carries a Zacks Rank of 2 (Buy).
The Zacks Consensus Estimate for LEVI’s current fiscal-year sales and earnings implies growth of 5.2% and 11.9%, respectively, from the year-ago figures. LEVI has delivered a trailing four-quarter earnings surprise of 21.4%, on average.
Fossil Group, Inc. (FOSL - Free Report) designs, develops, markets, and distributes consumer fashion accessories in the United States, Europe, Asia, and internationally. At present, FOSL carries a Zacks Rank of 2.
The Zacks Consensus Estimate for FOSL’s current fiscal-year sales indicates a decline of 4.9%, while the same for earnings indicates growth of 87.6% from the year-ago figures. FOSL delivered a trailing four-quarter negative earnings surprise of 381.8%, on average.