Victoria’s Secret and Fashion Peers Gain as Sexy Aesthetics Resurface

Fashion and beauty equities emphasizing body shape and sexual appeal have experienced significant gains over the past six months, diverging sharply from peers that previously prioritized diversity and inclusivity. Victoria’s Secret, the lingerie specialist, saw its shares climb by 61% in the last half-year, while color cosmetics maker e.l.f. Beauty rose more than 31% and Abercrombie & Fitch gained 53%. In France, L’Oréal increased its market value by 8% over the same period, surpassing LVMH, which declined by 35%, to become the country’s most valuable company. This performance gap highlights a clear market preference for brands that have recently re-embraced traditional aesthetics of femininity and body curvature.

The strategic pivot is evident in marketing campaigns that move away from the "embracing bodies as they are" messaging of the late 2010s toward highlights of celebrity sex appeal and form-fitting design. Nike, whose stock dropped nearly 50% over the past year, has expanded its collaboration with Kim Kardashian’s Skims brand to emphasize body curves, while American Eagle and Calvin Klein have featured high-profile celebrities in ads that stress fit and allure. Industry observers note that this shift aligns with broader fashion trends, such as the return of skinny jeans and visible makeup, replacing the oversized and natural looks that dominated recent years.

Victoria’s Secret Drives Sector Performance

Victoria’s Secret has been the most dramatic beneficiary of this aesthetic resurgence. The company, which previously softened its image in response to criticism over body standards, has revived its glamorous fashion shows and promoted products like push-up bras. In June, the firm changed its New York Stock Exchange ticker symbol from VSCO to VSXY, explicitly linking its brand identity to the concept of sexiness. This strategic repositioning coincided with a 15% year-on-year increase in first-quarter sales to $1.56 billion. Following an upward revision of its annual earnings forecast, the stock surged approximately 50% in a single day on June 2, reaching a record high.

Abercrombie & Fitch has similarly capitalized on the return of 2000s-style fashion, with low-rise pants and form-fitting tops gaining popularity among younger consumers. The retailer’s recent earnings announcement, which included raised annual forecasts, triggered a single-day jump of over 20% in its share price. Meanwhile, e.l.f. Beauty, a mid-priced U.S. cosmetics company focused on color products, has seen its stock rise by more than 30% over the past six months. This trend suggests that consumers are favoring accessible, image-enhancing products during periods of economic uncertainty, a dynamic often referred to as the "lipstick effect." As noted by GN auto stocks/consumer: consumer stocks, this shift indicates a preference for affordable luxuries that boost personal appearance over high-end luxury goods.

Strategic Shifts in Marketing and Product

The divergence in stock performance underscores a broader realignment in consumer preferences within the fashion sector. Brands that previously emphasized social messages regarding diversity and self-expression are now adjusting their approaches to address sluggish sales and declining share prices. Nike’s stock decline of over 40% this year, partly attributed to softness in the Chinese market, has prompted a renewed focus on body-conscious collaborations. Similarly, the fashion industry is seeing a return to slim-fit silhouettes and bold makeup styles, such as smoky eyes and defined lip lines, replacing the previously dominant "clean girl" aesthetic. This collective move toward visible femininity and body shape appears to be driving the current wave of equity gains among these consumer-facing companies.