- Victoria’s Secret recorded an almost 50% jump in share prices on Tuesday.
- The shares were last trading 40% higher at $75.61.
- The retailer posted double-digit quarterly revenue growth earlie
Shares of lingerie brand Victoria's Secret are headed for their best day ever after the stock jumped about 50% to a record high. The stock was last trading 40% higher at $75.61 after registering a record high of $81.28 earlier in the session, Reuters reported.
The company now expects its fiscal year 2026 net sales to range between $7.03 billion and $7.13 billion, compared to earlier estimates of $6.85 billion to $6.95 billion.
The retailer also hiked its predictions for annual adjusted operating income to $550 million-$580 million, compared with the earlier range of $430 million to $460 million. In the current quarter, Victoria's Secret expects about $15 million in tariff impact.
The company also reported an adjusted profit of 60 cents per equity, double the predictions of 30 cents per share.
Why Are Victoria's Secret Shares Experiencing A Surge?
The growth is down to the retailer posting double-digit quarterly revenue growth. The company cited lower tariff costs as well as more customers willing to spend full price on its products for its fiscal first quarter growth.
The updated forecasts by Victoria's Secret also reflect efforts by CEO Hillary Super to reverse several years of declining sales by leaning back into the retailer's "sexy" image and reducing discount.
Victoria's Secret has revived its popular annual runway show after six years. In May, the retailer announced that it would change its ticker on the New York Stock Exchange to from "VSCO” to "VSXY", saying "sexy has always been part of our DNA."
"Victoria's Secret, PINK, and Beauty are gaining cultural relevance and expanding their customer files, and we have a strong pipeline of product launches, partnerships, and brand moments ahead," Super told Reuters .
Over the past few years, Victoria's Secret has tackled shifting views over beauty standards, upstart rivals, activist investor pressure and criticisms of perpetuating unrealistic stereotypes.
Super has worked to tackle the problems, while also trying to win over a new generation of shoppers.
One thing that's helped Victoria's Secret is its large store footprint in malls, as per CNBC, an aspect that had been criticised in the past.
The earnings also highlighted a bifurcation in US consumer spending. While higher-income shoppers continue to spend on discretionary items, lower-income households face persistent inflationary pressure and economic uncertainty.
