Victoria's Secret surges 300% as Morgan Stanley backs CEO-led turnaround

Morgan Stanley is turning bullish on Victoria's Secret, citing CEO Hillary Super's turnaround strategy as the stock surges more than 300 percent.

"Victoria's Secret has been turning its business around under CEO Hillary Super. Morgan Stanley is beginning to believe in the trends," Kit Norton, a reporter at Barron's, wrote in a July 20 article. The investment bank sees further upside in the shares, Norton reported.

Shares of the Columbus, Ohio-based lingerie retailer have gained more than 300 percent over the past 12 months, closing up 7.8 percent on Monday. The rally has far outpaced the broader retail sector — the SPDR S&P Retail ETF (XRT) has risen roughly 12 percent over the same period.

Super, who took over as chief executive in 2024, has focused on expanding size inclusivity, refreshing store formats, and strengthening the company's direct-to-consumer channel. The brand spent years losing market share to newer competitors such as ThirdLove and Savage X Fenty, which captured younger shoppers with more inclusive marketing and online-first models. Victoria's Secret was spun off from L Brands in 2021 and has since worked to distance itself from its previous image.

The Morgan Stanley endorsement adds to a growing list of Wall Street firms reassessing Victoria's Secret's prospects. The company's market value has swelled by billions during the rally, though it remains well below its peak in the mid-2010s when the brand dominated US lingerie sales. The stock's 300 percent gain ranks among the best in the retail sector over the past year.

For holders, the key question is whether the turnaround can sustain momentum into 2027. The next catalyst will be the company's quarterly earnings report, where investors will look for same-store sales growth and margin improvement as evidence that Super's strategy is gaining traction. A strong print could draw additional institutional buyers and push the stock toward new highs.

This article is for informational purposes only and does not constitute investment advice.