Victoria's Secret stock surges on raised outlook, Q2 beat

NEW YORK - Victoria's Secret & Co. (NYSE:VSCO) saw its shares jump 4% after the lingerie retailer beat second-quarter expectations and raised its full-year outlook, signaling improving sales trends.

The company reported second-quarter adjusted earnings per share of $0.40, surpassing analyst estimates of $0.35. Revenue came in at $1.42 billion, slightly above the consensus of $1.41 billion and down 6% YoY.

Victoria's Secret raised its fiscal 2024 outlook, now forecasting net sales to be down approximately 1% compared to the previous guidance of a low-single-digit decline. The company expects adjusted operating income for the year to be between $275 million and $300 million, up from the prior range of $250 million to $275 million.

"Our financial results for the second quarter came in at the high end of expectations and we delivered year-over-year quarterly operating income growth for the first time since 2021," said Interim CEO and CFO Timothy Johnson. He noted "continued sequential improvement in quarterly sales results in North America for the fourth consecutive quarter."

For the third quarter, Victoria's Secret projects net sales to increase low-single digits compared to $1.265 billion in the same period last year. The company anticipates an adjusted operating loss of $40 million to $60 million and earnings per share between -$0.80 and -$0.60, compared to analyst estimates of -$0.68.

Johnson highlighted positive customer response to new merchandise, particularly the Victoria's Secret Dream bra collection and PINK's back-to-campus event. He also noted high-single-digit sales growth in the company's International business and Adore Me segment.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Source: Investing.com