Victoria’s Secret & Co. rose to its highest level in more than two years on Friday as America’s biggest lingerie maker showed signs of business recovery.
Victoria’s Secret shares rose as much as 13% to their highest since May 2022, before paring some of the gains. The advance adds to the 62% gain the stock has already posted this year as of Thursday’s close, more than three times the Russell 2000 index’s gain over the same period.
Victoria’s Secret said in its quarterly report released Thursday that revenue will grow by 2% this fiscal year. This is higher than the previous outlook calling for a 1% decline. Annual adjusted operating income is expected to be up to $345 million, 15% more than 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.
This is the company’s first earnings report under Hillary Super, who was named chief executive officer in August. Since Victoria’s Secret ousted Rihanna from her lingerie brand, the stock has surged, indicating optimism that she will be successful in restoring the company’s performance.
