Business
Victorias Secret Shares Surge 40% on Strong Earnings, Raised Sales Forecast; CEO Cites Loyalty and Pricing Power
📅 June 02, 2026 08:00 ET
⏱ 2 min
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GazetaDay Editorial
Victoria's Secret raised its full-year guidance on Tuesday after exceeding earnings estimates in its fiscal first quarter, citing lower tariff costs and increased consumer willingness to pay full price. Shares soared about 40% in premarket trading.
Earnings Beat and Key Metrics
For the fiscal first quarter, Victoria's Secret reported adjusted earnings per share of 60 cents, well above the 30 cents expected by analysts surveyed by LSEG. Revenue came in at $1.56 billion, compared with the $1.52 billion consensus estimate.
CEO Commentary on Growth Drivers
Chief Executive Hillary Super told CNBC the company saw "very consistent, double-digit [sales] increases across Victoria's Secret, Pink, beauty channels, digital, stores and international, all very positive." She highlighted that "supercharging bras" is a key initiative, driving double-digit comparable sales growth. "The loyalty that bras creates and the anchor that it is in the business is just so important," Super added. The company grew sales with "significantly" fewer promotions and gained market share during the quarter, particularly among shoppers aged 18 to 24.
Tariff Savings and Raised Outlook
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 ahead of the $6.99 billion LSEG estimate. The company also raised its full-year adjusted operating income guidance by more than $100 million, projecting $550 million to $580 million, compared with a previous range of $430 million to $460 million. Chief Financial Officer Scott Sekella attributed the improved outlook to better-than-expected sales driving stronger leverage on fixed costs, as well as lower tariff rates after many of President Donald Trump's sweeping duties were ruled illegal. "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. For the current quarter, the company expects sales between $1.59 billion and $1.62 billion, beating the $1.56 billion consensus estimate from LSEG.
Market Context
As of June 2, 2026, the US dollar trades at 71.55 Russian rubles (change: +0.53), while the euro stands at 86.25 rubles (change: +3.61). Bitcoin is at $69,421 (24-hour change: -4.1%). Crude oil is estimated at approximately $72 per barrel.
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