• Lulu’s Fashion Lounge Holdings, Inc. recently announced a new online wholesale partnership with Victoria’s Secret, adding a Lulus dress assortment to Victoria’s Secret’s digital platform and expanding Lulus’ Amazon and Nordstrom-driven wholesale push.
• Alongside this partnership, recent commentary has highlighted improving brand sentiment under Victoria’s Secret’s new management, suggesting that operational and brand repositioning efforts are beginning to gain traction with investors and consumers.
• We’ll now examine how the Lulus online wholesale partnership could influence Victoria’s Secret’s evolving investment narrative and long-term brand repositioning.

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Victoria's Secret Investment Narrative Recap

To own Victoria’s Secret today, you need to believe the brand refresh and omnichannel push can offset tariff headwinds, mall traffic pressure, and intense competition. The Lulus online dress partnership fits the inclusivity and fashion-forward narrative, but it is unlikely to be a near term needle-mover versus macro-driven demand and execution on inventory and promotions, which still look like the key catalyst and the biggest operational risk.

The most relevant recent announcement here is Victoria’s Secret’s 2026 guidance, which calls for net sales of US$6.85 billion to US$6.95 billion and operating income of US$430 million to US$460 million. That outlook frames how investors might think about the Lulus collaboration: as one of several digital and product initiatives that could help the company work toward its sales and margin goals, while still leaving tariff exposure, store productivity, and cost inflation as central risks.

Yet beneath the optimism around brand recovery and new partnerships, investors should be aware that rising tariffs and sourcing costs could still...

Victoria's Secret's narrative projects $6.7 billion revenue and $143.6 million earnings by 2028. This requires 2.2% yearly revenue growth and a $7.8 million earnings decrease from $151.4 million today.

Uncover how Victoria's Secret's forecasts yield a $31.20 fair value, a 35% downside to its current price.

Exploring Other Perspectives

Some of the most optimistic analysts were already assuming revenue near US$6.5 billion and earnings around US$197.7 million by 2028, so this kind of wholesale and digital expansion might either support that view or force a rethink, depending on how you weigh the upside of faster inventory turns against the risk that reduced promotions could still pressure sales volumes over time.

Explore 6 other fair value estimates on Victoria's Secret - why the stock might be worth less than half the current price!

Decide For Yourself

Disagree with existing narratives? Extraordinary investment returns rarely come from following the herd, so go with your instincts.

• A great starting point for your Victoria's Secret research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Victoria's Secret research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Victoria's Secret's overall financial health at a glance.

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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.