Why Victoria's Secret Stock Is Soaring Friday

Core Insights - Victoria's Secret (VSCO) shares surged after the company reported better-than-expected third-quarter results and raised its guidance due to reduced promotions and increased prices [1][5] Financial Performance - The company reported a third-quarter loss of $0.46 per share, which was $0.13 lower than analysts' forecasts [1] - Revenue increased by 9.2% to $1.47 billion, surpassing expectations, with comparable store sales up by 5% and direct-to-consumer sales gaining 8% [1][6] - North American sales rose by 5.4% to $778 million, while direct-to-consumer sales increased by 4.3% to $428.5 million; international sales saw a significant jump of 33.5% to $264.8 million [3] Strategic Initiatives - The company's turnaround strategy focuses on fewer promotions and more full-price selling, which appears to be effective as indicated by comparable sales growth and improved margins [2] - Adjusted gross margin grew by 170 basis points, attributed to a reduced promotional approach and higher regular-priced selling [4] Future Outlook - Victoria's Secret raised its full-year adjusted EPS guidance to between $2.40 and $2.65, and revenue expectations to $6.45 billion to $6.48 billion, up from previous estimates of $1.80 to $2.20 for EPS and $6.33 billion to $6.41 billion for revenue [5]