Victoria’s Secret soars 50% as turnaround powers upbeat annual forecasts

June 2 (Reuters) – Victoria’s Secret shares jumped about 50% to a record high and were set for their best day ever on Tuesday, after the lingerie retailer raised its annual forecasts after posting double-digit quarterly revenue growth across its brands.

The upbeat forecasts underscore CEO Hillary Super’s efforts to stem several years of declining sales by reining in discounting and leaning back into its former “sexy” image.

The company has revived its popular annual runway show after a six-year hiatus and in May announced it would change its ticker on the New York Stock Exchange to “VSXY” from “VSCO,” saying “sexy has always been part of our DNA.”

“Victoria’s Secret, PINK, and Beauty are gaining cultural relevance and expanding their customer files, and we have a strong pipeline of product launches, partnerships, and brand moments ahead,” Super, who took charge in 2024, said on Tuesday.

The results also reinforced a bifurcation in U.S. consumer spending, with higher-income shoppers continuing to spend on discretionary and “nice-to-have” items, while lower-income households pull back under persistent inflationary pressure and economic uncertainty.

Shares of Victoria’s Secret were last up 40% at $75.61 after hitting a record high of $81.28 earlier in the session. As of last close, the stock has nearly tripled in value in the past 12 months.

About 19% of the company’s publicly available shares are shorted, according to Ortex data, an elevated level that some analysts say could leave the stock exposed to a short squeeze.

Victoria’s Secret now expects fiscal year 2026 net sales in the range of $7.03 billion to $7.13 billion, compared with its previous range of $6.85 billion to $6.95 billion.

The company, which is trying to fend off activist investor pressure, forecast annual adjusted operating income in the range of $550 million to $580 million, compared with its prior forecast of $430 million to $460 million. The company expects about $15 million in tariff impact in the current quarter.

“The leadership team and strategies are beginning to bear fruit through an evolving assortment across brands, supported by improved messaging and brand storytelling,” Telsey Advisory’s Dana Telsey said.

Sales rose 15% to $1.56 billion in the three months ended May 2, marking the company’s fourth straight quarter of growth and topping estimates of $1.52 billion, according to LSEG data.

Victoria’s Secret also reported an adjusted profit of 60 cents per share, well above estimates of 30 cents.

(Reporting by Sanskriti Shekhar and Aishwarya Venugopal in Bengaluru; Additional reporting by Medha Singh; Editing by Leroy Leo and Sriraj Kalluvila)