Victoria’s Secret shares surged over 40% in after-hours trading on Wednesday after the lingerie retailer reported quarterly earnings that far exceeded analyst expectations and raised its full-year sales forecast. The company posted adjusted earnings per share of $0.90, compared with the consensus estimate of $0.60, while revenue came in at $1.41 billion against expectations of $1.36 billion. Same-store sales rose 3%, reversing a decline in the prior quarter. 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. She noted that the brand is gaining traction with Gen Z and millennial shoppers across income brackets, driven by new styles and a stronger digital presence. The company also raised its outlook for the current quarter and full year, citing improved inventory management and cost controls. Victoria’s Secret has been working to shed its outdated image and compete with newer direct-to-consumer brands. The strong results suggest the strategy is beginning to pay off, though the company still faces challenges in a competitive retail environment.
Market Outlook
Victoria’s Secret stock appears poised for further gains in the near term, as the strong earnings beat and raised guidance could attract momentum buyers. However, the sharp spike may lead to profit-taking, so a cautious bullish stance is warranted.
Source: CNBC Business
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