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What is driving the sharp rise in the stock?

Victoria's Secret shares have gained nearly 300% over the past year, drawing investors' attention back to the company. After a ticker change in June 2026, the stock has been trading under the VSXY symbol and has reached its highest levels in years.

The rebound in the market is not tied to a single factor. Stronger sales, changes in brand positioning and the new management team have all helped, while Wall Street analysts also see an added boost from consumer shifts driven by GLP-1 class weight-loss drugs.

As drugs such as Ozempic, Wegovy and Zepbound have become more widespread, the so-called “Ozempic economy” has strengthened expectations that weight loss could redirect consumer spending into different categories. In this context, changes in body size are increasing the need to replace items, especially lingerie and close-fitting clothing.

How are GLP-1 drugs affecting lingerie sales?

According to analysts, millions of people losing weight could increase spending on wardrobe refreshes. Because fit is critical in products such as bras, panties and similar items, retailers like Victoria's Secret could see additional demand.

The company's Chief Executive Officer Hillary Super said it is monitoring the effect of GLP-1 drugs on customer behavior. The company said it has seen about a 3% downward shift in the bra band and underwear sizes customers are buying.

  • According to Reuters, consumers using GLP-1 drugs are returning to physical stores more often to try products on because of size changes.
  • Research from ReturnPro shows that 58% of consumers in this group spend on premium or higher-priced apparel during store visits.

This pattern can mean more than just one new purchase; it can amount to a broader refresh of the underwear drawer. As a result, the impact is not only on unit sales but also on basket size.

What do the improved results and investor interest say?

The company's operational recovery has also supported the stock's performance. In the first fiscal quarter, sales rose 15% year on year to $1.56 billion. Comparable store sales increased 13%, while operating profit climbed from $20 million to $76 million.

Victoria's Secret says it has seen a clear improvement in both operations and shareholder returns under the new management period. The company said total shareholder return has been 141% since it announced in August 2024 that Hillary Super would take over.

Meanwhile, some major investors have also locked in gains from the rally and exited their positions. Billionaire fund manager David Einhorn's firm exited its Victoria's Secret investment after holding it for about a year; the reported internal rate of return on that position was 157%.

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