(Bloomberg) -- Victoria’s Secret & Co. rallied to the highest in more than two years on Friday on signs the largest US lingerie maker’s turnaround is gaining steam.
Shares of Victoria’s Secret rose as much as 13%, hitting the highest level since May 2022, before paring some of the gain. The advance adds to the 62% gain the stock had already posted this year through Thursday’s close, more than three times the rise of the Russell 2000 Index over the same period.
Revenue will climb as much as 2% this fiscal year, Victoria’s Secret said in its quarterly report released Thursday. That’s up from a previous outlook calling for a drop of 1%. Annual adjusted operating income is expected to be as much as $345 million, a 15% bump from what the company said earlier this year.
The company also reported third-quarter sales that topped Wall Street expectations and said shoppers had an early positive response to its holiday merchandise.
It’s the company’s first earnings report under Hillary Super, who was named chief executive officer in August. The stock has surged since Victoria’s Secret poached her away from Rihanna’s lingerie brand, signaling optimism she’ll be successful in reigniting the company’s performance.
Telsey Advisory Group analyst Dana Telsey said the company had a “nicely executed quarter.”
“We are encouraged to see the progress across both Victoria’s Secret and PINK brands, as its intimates business outpaced the broader domestic intimates market during the quarter,” Telsey wrote in a note to clients.
Victoria’s Secret has been struggling for years, dogged by falling sales and increased competition from upstart lingerie brands. It’s also looking to move on from allegations of workplace misconduct.
©2024 Bloomberg L.P.