A decent Q1 print and expectations of gains from a U.S.-China trade deal are lifting retail investor sentiment.

Retail investor optimism for Victoria's Secret (VSCO) strengthened despite the lingerie retailer's soft quarterly forecast.

Shares dropped 5.4% on Wednesday.

Victoria's Secret issued preliminary results last week and published the full results on June 11, following a cyber incident that disrupted operations last month.

For the current quarter, the company expects revenue of $1.38 billion to $1.41 billion and adjusted earnings per share of $0.00 to $0.15. That's below analysts' expectations of sales of $1.42 billion and earnings of $0.30 per share.

The company also lowered its full-year adjusted profit forecast by $50 million, now projecting between $270 million and $320 million, citing the anticipated impact of U.S. tariffs on its business. It maintained the revenue outlook.

In Q1, revenue was $1.35 billion, and adjusted profit was $0.09 per share, the same as in the preliminary results.

On Stocktwits, the retail sentiment climbed a few notches higher in 'extremely bullish' territory, with some users lauding the Q1 performance.

VSCO sentiment and message volume as of June 11 | Source: Stocktwits

"The company said last week that they were going to report $0.09 per share, which is near the high-end of its previous guidance range and above the consensus estimate at the time," a user said.

"Today, the company reported exactly in-line with that number."

Another user shared optimism for the company ahead of an imminent trade deal between the U.S. and China.

"China now is going to move this more than anything with earnings out of the way," they said, adding that they will buy more stock if it drops below $20.

One user still expressed frustration that the company did not clearly convey the impact of the cyber outage in the form of "adjusted operating income."

The Victoria's Secret e-commerce site was down from May 26 to 29, and some internal systems are still being restored.

The company's shares are down 49.3% year-to-date.

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