Victoria’s Secret (NYSE:VSCO) shares fell more than 16% in premarket trading on Thursday after the company issued third-quarter operating income guidance below Wall Street expectations, despite reporting second-quarter earnings above estimates and raising its full-year revenue outlook.
The company reported second-quarter earnings per share of $0.95, compared with the analyst estimate of $0.75. Revenue increased 10% year over year to $1.61 billion, compared with the consensus estimate of $1.62 billion.
Adjusted operating income reached $124 million, up from $55 million in the same quarter a year earlier.
Q3 Revenue Outlook Above Consensus
For the third quarter, Victoria’s Secret expects revenue of between $1.57 billion and $1.6 billion, compared with the consensus estimate of $1.56 billion.
However, the midpoint of the company’s third-quarter operating income guidance was $15 million, below the Wall Street estimate of $24.4 million.
The company plans to increase strategic marketing investment during the period.
“We see significant opportunity ahead and are doubling down on what is working,” said CEO Hillary Super. “We are increasing our strategic marketing investment to expand our reach, deepen customer connection, and build on the brand heat we are creating.”
Victoria’s Secret Raises Full-Year Revenue Guidance
Victoria’s Secret increased its fiscal 2026 revenue forecast to between $7.1 billion and $7.18 billion, compared with its previous range of $7.03 billion to $7.13 billion.
The midpoint of the updated range is approximately in line with the analyst consensus estimate of $7.14 billion.
The company also raised its fiscal 2026 adjusted operating income guidance to between $560 million and $590 million, up from its previous forecast of $550 million to $580 million.