Billionaire David Einhorn turns bullish on Victoria's Secret

David Einhorn is not known for cheerleading.

The Greenlight Capital founder built his reputation on sharp short bets, including his famous calls against Lehman Brothers and Allied Capital.

When Einhorn goes on offense, Wall Street tends to pay attention.

So when the billionaire hedge fund manager stepped onto the Sohn Investment Conference stage this month, smiling and seemingly upbeat, it was notable. Even more notable was what he was pitching.

One of the names on his list? Victoria's Secret.

Why Einhorn is bullish on Victoria's Secret stock

At the Sohn Conference, Einhorn told the audience that he has identified five companies across different industries undergoing meaningful transformations. Victoria's Secret (VSCO) was one of them.

He pointed specifically to new leadership as the catalyst, arguing that the brand is reclaiming its identity and reigniting what made it culturally relevant in the first place, including the return of its annual televised fashion show.

That kind of endorsement carries weight. And the numbers behind it are hard to dismiss.

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The turnaround is real and accelerating

Victoria's Secret has been a turnaround story in the making since CEO Hillary Super came on board in August 2024.

She brought with her a merchant's instinct and a clear strategic framework called "Path to Potential," built around four priorities: reasserting bra authority, reigniting the PINK brand, growing the beauty business, and modernizing how both brands connect with customers.

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One year in, the results are showing up across nearly every line of the income statement.

• For fiscal 2025, the company reported net sales of $6.55 billion, up 6% year over year when excluding a one-time accounting benefit from the prior year.
• Comparable sales grew 5% for the full year, then accelerated sharply to 8% in the fourth quarter.
• That fourth quarter comp matched the prior quarter, marking two straight quarters of 8% growth.
• Adjusted operating income rose 16% to $403 million.
• Adjusted earnings per share jumped 22% to $3.
• All of this happened while the company absorbed $85 million in net tariff pressure.
• The bra business, once in a multiyear slump, returned to annual growth for the first time since 2021.
• PINK posted its strongest growth year in a decade.
• The beauty segment, anchored by Bombshell, which the company calls America's No. 1 fragrance, grew for the third consecutive year.
• The company also grew its total customer file for the first time in years, with the strongest growth coming from new customers, particularly younger shoppers.

What next for VSCO stock

In fiscal 2026 (ending in January), Victoria's Secret forecast revenue between $6.85 billion and $6.95 billion, which indicates year-over-year growth of around 5.5%.

Its operating income is projected to range between $430 million and $460 million, indicating a 20 to 50 basis-point margin expansion, even after accounting for an estimated $40 million in incremental net tariff costs.

While speaking about the tariff headwind, Victoria's Secret CEO, Scott Sekella, stated:

"We mitigated this headwind with margin expansion driven by our strong operational foundation, which enabled us to scale effectively, resulting in significant leverage on buying and occupancy expenses."

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For the first quarter of 2026, the company projects revenue growth of 10% to 13%, driven by momentum from a strong Valentine's Day season.

Early reads on spring floor sets are encouraging, with Super describing them as "vibrant, saturated with color and completely alive."

Since the board announced Super's appointment in August 2024, VSCO's total shareholder return has been roughly 150%, significantly outpacing both the S&P 500 Consumer Discretionary Distribution Retail index and the S&P 600.

Is VSCO stock undervalued?

Wall Street forecasts adjusted earnings to expand from $2.69 per share in fiscal 2026 to $5.25 per share in fiscal 2030.

If VSCO stock is priced at 15x forward earnings, which is similar to its current multiple, it could gain nearly 60% over the next four years.

Out of the nine analysts covering VSCO stock, seven recommend "Buy" and two recommend "Hold". The average Victoria's Secret stock price target is $67, indicating an upside potential of 27% from current levels.

Einhorn, clearly, agrees with Wall Street. For a man who once made his name betting against companies, a bullish call on Victoria's Secret is worth watching closely.

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This story was originally published May 25, 2026 at 12:13 PM.