Victoria’s Secret shares surged over 40% in after-hours trading Thursday after the lingerie retailer reported quarterly earnings that significantly exceeded analyst expectations and raised its full-year sales forecast. The company posted adjusted earnings per share of $0.90, well above the consensus estimate of $0.57, while revenue reached $1.41 billion, topping projections of $1.38 billion. Same-store sales rose 3%, reversing a previous decline. CEO Hillary Super, who took the helm in 2022, has been leading a turnaround effort focused on revamping product lines and marketing to appeal to younger consumers. The company noted particular strength in its bras and panties categories, as well as growth in its loyalty program. Management now expects net sales for the fiscal year to be roughly flat to slightly up, compared with prior guidance for a low-single-digit decline. The upbeat results suggest that Victoria’s Secret’s strategy to modernize its brand and attract a broader customer base is gaining traction, even amid a challenging retail environment.
Market Outlook
Victoria’s Secret (VSCO) appears poised for further short-term gains as the strong earnings beat and raised guidance may attract momentum buyers. However, sustainability of the turnaround remains uncertain, so a pullback could occur after the initial spike.
Source: CNBC Business
Track how this event may impact global markets at BingX News.
Disclaimer: this content is informational analysis only and does not constitute investment advice.
