Victoria’s Secret Stock Rises On Raised 2024 Outlook: Retail Sentiment Brightens

Victoria’s Secret revenues for the quarter stood at $1.32 billion, rising 7% year-over-year

Victoria’s Secret & Co. ($VSCO) stock was up 9% in mid-day trading on Friday after the lingerie and beauty products retailer’s better-than-expected third-quarter earnings and raised outlook for Q4, lifting retail sentiment.

Loss per share came in at $0.50, beating Wall Street estimates of $0.62.

The company also raised its full-year outlook, expecting net sales growth for fiscal year 2024 to be up about 1% to 2% from last year, compared to prior guidance of a decline of 1%.

Adjusted operating income for fiscal 2024 is now expected to be in the range of $315 million to $345 million, favorable to its prior guidance of $275 million to $300 million, the company said. Total comparable sales for the third quarter of 2024 increased 3%.

Victoria’s Secret revenues for the quarter stood at $1.32 billion, rising 7% year-over-year, and above the expected $1.29 billion quoted by analysts. The revenue growth was above its previously communicated guidance range of a net sales increase of low-single digits. While its net loss of $56 million narrowed from $71 million a year ago.

Retail sentiment on the stock improved to ‘extremely bullish’ (85/100) from ‘neutral’ (48/100) a day ago. Message volumes climbed to ‘extremely high’ from ‘high’ zone.

“Our strength for the quarter was broad-based across all regions, all channels, all major merchandise categories and importantly all brands - Victoria’s Secret, PINK and Adore Me - were up to last year,” Hillary Super, Victoria’s Secret newly-appointed CEO said.

Victoria’s Secret has a global footprint of 1,380 retail stores in nearly 70 countries.

Victoria’s Secret stock is up 72% year-to-date.

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