Victoria's Secret stock soars after runway ‘angels' lend divine sales boost

Core Insights - Victoria's Secret has experienced a significant sales boost following the return of its Fashion Show, which CEO Hillary Super described as a "defining moment" for the brand's evolution into a new era of sexy [1][9] - The company reported a 9.2% increase in quarterly sales, reaching $1.5 billion for the quarter ending November 1, and raised its full-year guidance for 2025 [3][12] Sales Performance - The company's shares surged over 15% after the earnings report, reflecting strong investor confidence [3] - Customers are now purchasing bras and panties at full price, marking a shift from the previous promotion-heavy strategy [4][6] - Some items sold out post-show, indicating strong consumer demand and momentum extending into the holiday season [5] Marketing Strategy - Victoria's Secret is focusing on a more unapologetically sexy marketing approach, moving away from previous strategies that diluted the brand's identity [11] - The "Very Sexy" campaign launched by the company includes new product lines such as garter belts and sheer bodysuits, contributing to the sales growth [8][11] Customer Demographics - There is a noted increase in higher-income customers, with shoppers now prioritizing product desirability over price [7] - The teen brand Pink has also seen a resurgence in sales, marking its first growth in years, which was highlighted during the Fashion Show [11] Fashion Show Impact - The 2024 Fashion Show featured a diverse range of models, including athletes and plus-size models, which was part of the brand's strategy to appeal to a broader audience [13] - Despite mixed reviews regarding the show's content and its response to past controversies, the event has proven to be a successful sales driver [5][12]