Victoria’s Secret is bringing sexy back.
Literally.
The company even changed its ticker from VSCO to VSXY. That’s funny. It’s clever.
And, frankly, it’s about time.
Management finally admitted something customers already knew: People want Victoria’s Secret, not some watered-down version.
After years of trying to be everything to everybody, they’re going back to what made the brand famous in the first place.
Most investors focused on the press release.
We focused on the chart.
While everybody’s debating whether the new ticker is cheesy or brilliant, VSXY’s quietly breaking out of one of the biggest bases in the entire market:
This isn’t just another breakout.
These are the highest prices Victoria’s Secret has ever traded at as an independent public company since it was spun off from L Brands.
That’s what I care about.
The ticker change makes for a funny headline.
The breakout is where the money is.
The Story Is Nice. The Trend Pays.
One of the biggest mistakes investors make is spending too much time thinking about what a company used to be.
Victoria’s Secret had plenty of problems.
Everyone knows that. The market knew, too.
But markets don’t pay you for knowing the past. They pay you for recognizing when the future starts to look different.
While everybody was arguing whether the new ticker was clever or corny, buyers kept showing up.
That’s all we needed to know. That’s why we bought it.
Here’s the shorter-term chart showing the breakout after management announced the rebrand and leaned back into what customers were asking for:
If this keeps working, we’ll likely buy more.
That’s how we invest at TrendLabs.
We don’t marry stories. We buy trends.
If a position works, we lean into it. If it doesn’t, we move on.
Simple.
The Real Story Isn’t Victoria’s Secret
The real story isn’t Victoria’s Secret.
It’s the consumer discretionary sector.
For months we’ve been talking about the improving behavior underneath the surface in smaller consumer discretionary names.
That’s not what you’re supposed to see if consumers are “tapped out” and the economy is supposedly falling apart.
Yet that’s exactly what the market keeps showing us. Victoria’s Secret is just one example.
Cheesecake Factory (CAKE) is another.
They’re completely different companies with completely different stories. One is selling lingerie. The other is selling enormous slices of cheesecake.
And yet both stocks are breaking out at the same time. That’s not a coincidence.
When you start seeing retailers, restaurants, apparel companies, and other consumer businesses all acting well together, the market is telling you that money is rotating into the entire group:
Everybody’s busy talking about Victoria’s Secret’s new ticker.
We’re paying attention to the bigger message. This isn’t just about bringing sexy back.
It’s about Small-Cap Consumer Discretionary (PSCD) becoming a leadership group.
That’s where we think the next opportunities are. And if these trends continue…
We’ll happily keep buying them.
Stay sharp,
JC Parets, CMT
Founder, TrendLabs