Victoria’s Secret soars as turnaround powers upbeat annual forecasts

Published Tue, Jun 2, 2026 · 10:00 PM

[NEW YORK] Victoria’s Secret shares jumped 42 per cent in early trading on Tuesday (Jun 2), as the lingerie retailer raised its annual sales and profit forecasts after posting double-digit quarterly revenue growth across its brands, including Pink.

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 reinforced a bifurcation in US 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.

Investors have cheered the turnaround efforts. Shares of Victoria’s Secret have nearly trebled in the past 12 months. They were trading at US$76.99 on Tuesday.

About 19 per cent of the company’s publicly available shares are shorted, Ortex data showed. The elevated level, some analysts say, could leave the stock exposed to a short squeeze.

Victoria’s Secret now expects FY2026 net sales in the range of US$7.03 billion to US$7.13 billion, compared with its previous range of US$6.85 billion to US$6.95 billion.

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

The company also expects to incur about US$15 million in tariff impact in the current quarter.

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

Sales rose 15 per cent to US$1.56 billion in the three months ended May 2, marking the company’s fourth straight quarter of growth and topping estimates of US$1.52 billion, LSEG data showed. Victoria’s Secret reported an adjusted profit of US$0.60 per share, well above estimates of US$0.30. REUTERS