Victoria’s Secret Shares Fall Despite Strong Earnings and Guidance Beat

Core Insights - Victoria's Secret & Co reported fourth-quarter results that exceeded analyst expectations, with earnings per share of $2.77 compared to the consensus estimate of $2.47 and revenue of $2.27 billion surpassing the expected $2.22 billion [1] - Despite strong financial performance, shares fell more than 12% intra-day on Thursday [1] Financial Performance - Adjusted operating income for the fourth quarter of 2025 was $316 million, exceeding the company's previously communicated guidance range [2] - Comparable sales increased by 8% during the fourth quarter, while full-year comparable sales rose by 5% [1] Future Guidance - For the first quarter of fiscal 2026, Victoria's Secret projected revenue between $1.49 billion and $1.525 billion, above the consensus estimate of $1.42 billion [2] - The company expects operating income for the first quarter to fall between $32 million and $42 million based on the projected sales range [2] - For the full fiscal year, revenue is expected to be between $6.85 billion and $6.95 billion, compared to the $6.77 billion consensus estimate [3] - Operating income for fiscal 2026 is projected to range between $430 million and $460 million [3]