11:26 AM EST, 03/07/2025 (MT Newswires) -- Victoria's Secret's (VSCO) Q1 and full-year outlook were "disappointing" amid expectations that turnaround progress will be delayed until H2 or early 2026, which is a bit slower than expected, Morgan Stanley said in a note emailed Friday.

Morgan Stanley said that the guidance assumes gradual macroeconomic improvement, increased marketing investment, better product differentiation, and key product launches in H2, but it remains cautious because of past performance and ongoing consumer uncertainty.

For Q1, sales and profitability were guided below market expectations due to weak consumer confidence, unfavorable weather, delayed tax refunds, a post-fashion show marketing pullback, and insufficient Valentine's Day product inventory, the firm added.

Morgan Stanley reduced its price target on Victoria's Secret's stock to $23 from $38 and kept its equal-weight rating.

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