Victoria's Secret & Co. shares experienced a significant surge in Tuesday's premarket trading, climbing as much as 34% after the company delivered a robust earnings report and raised its annual sales and profit guidance. The stock, which began trading under the new ticker symbol VSXY on the New York Stock Exchange, reflected renewed investor confidence in CEO Hillary Super's turnaround strategy.
According to Reuters, the gains were recorded before the official opening bell, with the regular trading session set to begin at 9:30 a.m. Eastern. The premarket move will face its first real test as deeper liquidity enters the market during regular hours.
Victoria's Secret reported first-quarter net sales of $1.560 billion, a 15% increase year-over-year, surpassing its earlier guidance. Total comparable sales, which track performance at stores and channels open for at least a year, rose by 13%. The company posted adjusted earnings per share of 60 cents, doubling the 30-cent estimate from analysts surveyed by LSEG. Adjusted earnings exclude certain items that management considers non-recurring, a metric commonly used in retail but one that often draws scrutiny.
Looking ahead, Victoria's Secret raised its fiscal 2026 sales forecast to a range of $7.03 billion to $7.13 billion, up from the previous target of $6.85 billion to $6.95 billion. Adjusted operating income is now expected to be between $550 million and $580 million, compared to the earlier guidance of $430 million to $460 million. Operating income represents profit before interest and taxes.
CEO Hillary Super described the quarter as "a very strong start to 2026," noting that the Victoria's Secret, PINK, and Beauty brands are "gaining cultural relevance." Chief Financial and Operating Officer Scott Sekella highlighted "higher regular-price selling, reduced promotions" despite ongoing tariff pressures. Tariffs, which are import taxes, can erode profit margins for apparel companies unless offset by higher prices, alternative sourcing, or reduced discounting.
In early electronic trading, Markets Insider reported the old VSCO ticker at $75.49, up $21.19 or 39.02% as of 7:33 a.m., well before the market open. The transition to the VSXY ticker is symbolic, with no change to ownership structure. The company announced last month that shares would trade under the new symbol starting June 2, retaining the same CUSIP number and requiring no action from shareholders.
The strong performance comes amid mixed signals from apparel peers. Gap and American Eagle both declined last week after issuing soft forecasts, reigniting concerns about discretionary spending. In contrast, Abercrombie & Fitch has been cited as one of the few retailers holding up better. "Lower-income consumers aren't doing as well as others," Morningstar analyst David Swartz told Reuters.
However, the rally also reduces the margin for error. If Victoria's Secret struggles to maintain full-price selling, resorts to promotions, or faces worsening tariff conditions, margins could compress again. Additionally, the ongoing proxy fight with BBRC International and Brett Blundy remains unresolved ahead of the June 11 annual meeting.
Victoria's Secret repurchased 2.2 million shares for $100 million in the first quarter, paying an average price of $45.27 per share—well below Tuesday's premarket indication. While the buyback is currently profitable on paper, the key question is whether the earnings momentum can be sustained beyond a single strong quarter.
For the second quarter, management forecast net sales between $1.590 billion and $1.615 billion, with operating income of $90 million to $100 million. The company must now demonstrate that Tuesday's rally reflects genuine confidence in ongoing demand, rather than merely excitement over the ticker change.