Investment firm DME Capital Management reduced its stake in Victoria's Secret by approximately 194,593 shares during the fourth quarter of 2025, divesting roughly $7.7 million worth of stock while maintaining a substantial position of 1.7 million shares. The transaction comes as the apparel retailer's stock has experienced significant momentum, gaining 93.2% over the past 12 months and reaching a 52-week high of $66.89.
The partial exit reflects concerns about current valuation metrics, with the company's price-to-earnings ratio exceeding 30—a level that may limit upside potential in the near term. However, underlying business fundamentals appear supportive, including strong third-quarter sales growth and management's decision to raise forward guidance, suggesting operational momentum remains intact.
Analysts monitoring the situation suggest investors may benefit from waiting for a potential price correction before initiating or expanding positions, given the stock's substantial appreciation and elevated valuation multiples relative to historical ranges.