New York, June 3, 2026 – Victoria's Secret & Co. shares experienced a historic session on Tuesday, surging 47% to close at a record $80.06, only to slip 2.85% in premarket trading Wednesday as the market reassessed the lingerie retailer's valuation following its blockbuster first-quarter results.
The stock, which began trading under the new ticker symbol VSXY on the New York Stock Exchange on June 2, saw its market value skyrocket as the company reported a 15% increase in net sales to $1.560 billion, with comparable sales rising 13%. Adjusted operating income of $80 million far exceeded the company's own forecast range of $32 million to $42 million, signaling that CEO Hillary Super's turnaround strategy is gaining traction.
"It's a very strong start to 2026," Super said in a statement, expressing growing confidence in the company's trajectory. Chief Financial and Operating Officer Scott Sekella highlighted higher regular-price selling and fewer promotions, a critical shift for a retailer aiming to improve margins and reduce reliance on discounting.
The company raised its full-year sales guidance to between $7.03 billion and $7.13 billion, up from the previous $6.85 billion to $6.95 billion. Adjusted operating income guidance was also lifted to $550 million to $580 million from $430 million to $460 million. For the second quarter, Victoria's Secret expects sales of $1.590 billion to $1.615 billion.
The surge was amplified by a short squeeze, as approximately 19% of the public float was sold short. As the stock rallied, short sellers were forced to cover their positions, driving the price even higher. At one point, the stock touched an intraday record of $81.28, according to Reuters.
Analysts have reacted with a mix of optimism and caution. Goldman Sachs raised its price target to $56 but maintained a Neutral rating, calling the quarter a "very strong result" with broad-based momentum. BofA Securities kept its Buy rating with a $68 target, noting the 13% comparable-sales gain and improved margins as evidence of progress in the brand turnaround. UBS downgraded Victoria's Secret to Neutral from Buy, lifting its target to $90, stating that the positive catalysts from four strong quarters of same-store sales have largely been priced in. Jefferies also cut its rating to Hold from Buy with a $73 target, acknowledging the market's increased recognition of the turnaround.
The strong performance from Victoria's Secret puts pressure on other specialty-apparel retailers such as Abercrombie & Fitch, American Eagle, and Gap, which are now expected to deliver growth without resorting to aggressive promotions that could erode margins.
Despite the euphoria, risks remain. The stock's dramatic one-day gain leaves little room for error, and the company faces headwinds including potential tariffs, fragile consumer confidence, and an ongoing proxy contest with BBRC International ahead of the June 11 annual meeting. Investors will be closely watching whether Victoria's Secret can maintain full-price selling momentum in its bra, PINK, and Beauty segments, and whether its second-quarter guidance can withstand any tariff impacts or softening consumer spending.
