Shares of Victoria’s Secret & Co. experienced a historic surge following a strong earnings report that exceeded expectations and an optimistic revision of its annual sales outlook. The lingerie retailer announced a new annual net sales target of up to $7.13 billion, an increase from the previous range of $6.95 billion. For the quarter ending May 2, the company reported net sales of $1.56 billion, significantly surpassing analyst forecasts. Both comparable sales for the recently completed quarter and projections for the current quarter were also ahead of estimates.
The stock rose dramatically by 47%, marking its largest single-day gain in history, with trading closing at record highs. Data from S3 Partners indicates that approximately 19% of the company’s tradeable shares are short-sold, suggesting that the stock could be particularly volatile. Over the past year, Victoria’s Secret shares have nearly quadrupled in value, reflecting investor confidence in CEO Hillary Super’s ongoing efforts to revitalize the brand.
Super’s strategy has increasingly centered on enhancing offerings in the bra category and targeting younger customers through its Pink brand. The company recently changed its ticker symbol to VSXY as part of its repositioning efforts. Notably, Super has faced significant pressure from investors, including billionaire Brett Blundy’s BBRC International Pte., which has called for a shareholder vote against board chair Donna James due to criticisms over management decisions that contributed to declining sales in prior years. However, the company has managed to turn the tide, reporting four consecutive quarters of annual revenue growth.
In recent remarks, Super highlighted significant market share gains in the bras segment among consumers aged 18 to 44. She emphasized that the company’s consumer base is resilient, particularly noting growth in households with annual incomes under $50,000 and over $200,000. During their earnings call, executives also pointed out increased sales of non-discounted merchandise, another positive indicator of the brand’s health.
Analysts have noted that the latest results suggest a notable inflection point for Victoria’s Secret, with Jefferies analyst Corey Tarlowe commenting that the company appears to be successfully retaining its core customers while attracting new ones. Looking ahead, a critical shareholder vote is set to take place on June 11 during the company’s annual meeting, where stakeholders will likely assess ongoing changes and performance.
