Key facts
- Victoria's Secret shares jumped over 40% to a record high.
- The company raised its annual sales and profit forecasts.
- Quarterly revenue grew 15% to $1.56 billion, exceeding estimates.
- Adjusted profit was 60 cents per share, surpassing the 30-cent estimate.
- CEO Hillary Super cited brand momentum and product launches for the performance.
- Approximately 19% of the company's shares are shorted.
Victoria's Secret shares surged approximately 50% to a record high, marking their best day ever, following the company's announcement of raised annual forecasts and double-digit quarterly revenue growth. CEO Hillary Super attributed the strong performance to increased cultural relevance across Victoria's Secret, PINK, and Beauty brands, a robust product launch pipeline, and strategic brand moments. The company's decision to return to its 'sexy' image, including reviving its annual runway show and changing its ticker to 'VSXY,' appears to be resonating with consumers. The results also highlighted a bifurcation in U.S. consumer spending, with higher-income shoppers continuing to purchase discretionary items while lower-income households cut back due to inflation and economic uncertainty. The company now expects fiscal year 2026 net sales between $7.03 billion and $7.13 billion, and annual adjusted operating income between $550 million and $580 million. With approximately 19% of its shares shorted, the stock is also exposed to a potential short squeeze. Super stated that the company is reducing promotions and markdowns, leading to healthier, brand-led business with higher regular-price selling. Barclays analysts raised their price target on the stock following these strong results.