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Victoria’s Secret & Co. raised its outlook after strong quarterly sales signalled new chief executive officer Hillary Super’s turnaround plan is taking hold.
The retailer now expects full-year revenue will be as much as $6.41 billion, up from a prior forecast of as much as $6.3 billion. The outlook includes an updated estimated tariff impact of about $100 million this year, double the prior projection.
The pressure is mounting for Super to drive returns at the company she joined about a year ago after being poached from Rihanna’s lingerie brand. Victoria’s Secret is being targeted by investors seeking a shakeup of the business and changes to the board and strategy. The stock has dropped 45 percent this year through Wednesday’s close.
In the second quarter ended Aug. 2, comparable sales rose 4 percent with gains both in stores and online. Analysts surveyed by Bloomberg had expected a slight decline. Business was strong throughout the quarter and accelerated in July and into August, the company said in a statement.
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Super’s strategy to revive the business has been focused on the young-adult brand Pink, bras and beauty.
Shares of Victoria’s Secret jumped 11 percent in early New York trading at 7:01 a.m.
Retailers have largely reported strong sales momentum this month from shoppers in the US, despite concerns about tariffs and inflation. The results suggest Americans are still willing to spend, though they are looking for cheaper options and discounts.
By Lily Meier
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