Victoria’s Secret & Co. (NYSE:VSCO) reported first-quarter results that comfortably exceeded market expectations and raised its full-year financial guidance, sending shares sharply higher in premarket trading. The earnings release also coincided with the company’s transition to its new stock ticker, VSXY.
The stock had previously attracted significant bearish positioning, with short interest standing at approximately 19.1%, adding to the market’s reaction following the stronger-than-expected performance.
Earnings and Revenue Top Expectations
For the first quarter, Victoria’s Secret reported adjusted earnings of $0.60 per share, significantly ahead of analyst forecasts of $0.32 per share.
Revenue climbed 15% year-over-year to $1.56 billion, surpassing the consensus estimate of $1.52 billion and improving from $1.35 billion recorded during the same period last year.
The company also delivered its fourth consecutive quarter of positive comparable sales growth, with comps rising 13%.
Profitability Exceeds Internal Targets
Operating income reached $76 million during the quarter, while adjusted operating income totaled $80 million.
That result came in well above the company’s previously issued guidance range of $32 million to $42 million, highlighting stronger-than-anticipated execution across its brands.
The performance reflects continued momentum across the business as management works to drive sales growth and improve profitability.
Management Highlights Broad-Based Strength
Chief Executive Officer Hillary Super said the company continued to build on the progress achieved during the second half of last year.
“We delivered a very strong start to 2026, exceeding top- and bottom-line guidance and continuing the momentum we built in the back half of last year,” said Hillary Super, Chief Executive Officer.
“We drove double-digit sales growth across Victoria’s Secret, PINK, and Beauty, as well as our fourth consecutive quarter of positive comps.”
The results indicate strength across multiple product categories and business segments rather than reliance on a single area of growth.
Full-Year Guidance Raised
Following the strong start to the year, Victoria’s Secret increased its fiscal 2026 revenue outlook.
The company now expects full-year revenue to range between $7.03 billion and $7.13 billion, up from its prior forecast of $6.85 billion to $6.95 billion.
The midpoint of the updated range, $7.08 billion, sits above analyst expectations of $6.96 billion.
Victoria’s Secret also raised its adjusted operating income forecast to between $550 million and $580 million, compared with its previous guidance of $430 million to $460 million.
Positive Outlook for the Second Quarter
Management also provided an encouraging outlook for the current quarter.
Second-quarter revenue is projected to come in between $1.59 billion and $1.62 billion, compared with $1.46 billion during the same period last year.
Operating income for the quarter is expected to range from $90 million to $100 million.
The guidance suggests the company expects its recent sales momentum and margin improvement efforts to continue through the remainder of the year.
Investors Reward Strong Execution
The combination of an earnings beat, stronger-than-expected sales growth and a significant increase in full-year guidance fueled a strong positive reaction from investors.
With comparable sales growth remaining robust and profitability outperforming internal targets, Victoria’s Secret appears to be gaining momentum as it moves through fiscal 2026.
The results also increase confidence in management’s turnaround strategy and its ability to sustain growth across the Victoria’s Secret, PINK and Beauty brands.