Victorias Secret Shares Surge 40% After Earnings Beat, Full-Year Outlook Raised

The lingerie retailer lifted its full-year guidance on Tuesday after surpassing fiscal first-quarter earnings estimates, citing lower tariff costs and increased consumer willingness to pay full price. Shares jumped roughly 40% in premarket trading.

Earnings and Guidance

Victoria's Secret now expects full-year sales between $7.03 billion and $7.13 billion, up from a prior range of $6.85 billion to $6.95 billion and well above the $6.99 billion consensus estimate compiled by LSEG. The company also raised its full-year adjusted operating income forecast by more than $100 million, to between $550 million and $580 million, compared with an earlier projection of $430 million to $460 million. For the current quarter, the company projects sales of $1.59 billion to $1.62 billion, beating expectations of $1.56 billion.

Chief Financial Officer Scott Sekella attributed the upgraded outlook to better-than-expected sales driving stronger leverage on fixed costs, as well as lower tariff rates following the invalidation of many sweeping duties imposed under President Donald Trump. "All of this is predicated on the Q1 that we had, the momentum we see into Q2 and how we feel about our back half launches," Sekella said.

Sales Drivers and Consumer Trends

Chief Executive Officer Hillary Super reported "very consistent, double-digit [sales] increases across Victoria's Secret, Pink, beauty channels, digital, stores and international, all very positive." She highlighted "supercharging bras" as a key initiative, noting double-digit comparable sales growth in that category and the importance of bra loyalty as an anchor for the business. Super added that the company grew sales with "significantly" fewer promotions and gained market share during the quarter, particularly among shoppers aged 18 to 24.

Regarding the impact of tax refunds on consumer spending, Sekella said some customers used the extra stimulus to shop at Victoria's Secret stores, but described the amount as "normal." Trends have remained consistent so far this quarter, even as tax refunds have largely dried up for many consumers.

First-Quarter Performance

In the fiscal first quarter, Victoria's Secret reported earnings per share of 60 cents, compared with Wall Street estimates based on a survey of analysts by LSEG.

Market Context

As of June 2, 2026, the U.S. dollar trades at 72.56 Russian rubles (change: +1.01), while the euro is at 84.61 Russian rubles (change: -1.64). Bitcoin is at $67,191 (24-hour change: -5.3%). Crude oil is estimated at approximately $72 per barrel.