Victoria’s Secret pops on surprise sales rebound, full-year guidance hike
The lingerie retailer saw growth across its flagship brand as well as its PINK line.
Victoria’s Secret shares were up over 5% in early trading Thursday after the intimates retailer reported stronger-than-expected Q2 results and hiked its full-year sales guidance.
Adjusted diluted earnings per share landed at $0.33, handily topping the Street’s estimate of $0.13 and the company’s outlook of flat to $0.15.
Revenue reached $1.46 billion, versus management’s guidance for $1.38 billion to $1.41 billion and the Street’s outlook of $1.4 billion. Same-store sales, which were expected to be down modestly, ended up 4% higher.
Looking ahead, Victoria’s Secret raised its full-year sales outlook to a range of $6.33 billion to $6.41 billion, up from prior guidance of $6.2 billion to $6.3 billion. Adjusted operating income is still expected to land between $270 million and $320 million, in line with previous guidance. Higher sales aren’t translating into an improvement in operating income in part because the company now sees a $100 million drag from tariffs, double the prior expected impact.
For Q3, the retailer projects an adjusted net loss of $0.55 to $0.75 per share, the midpoint of which is worse than Wall Street’s forecast for a $0.57 loss.
The retailer highlighted comparable sales growth in its Victoria’s Secret and PINK brands, spanning North America and international markets, with gains both in stores and online. Management has also been leaning into efficiency as the company navigates higher tariff costs and cuts back on promotions to preserve margins.
Shares were down about 44% year to date heading into the earnings release.
