Victoria’s Secret shares fell 10.58% to $77.59 Thursday after the company reported stronger-than-expected second-quarter earnings but missed sales estimates and offered a fiscal 2026 revenue outlook below Wall Street expectations. Adjusted diluted earnings nearly tripled to $0.95 per share from $0.33 a year earlier, beating the $0.77 consensus, while sales rose 10% to $1.611 billion versus the $1.619 billion estimate. Comparable sales increased 9%, and two-year comparable sales rose 13%. Adjusted gross margin expanded 320 basis points to 38.8%, while adjusted operating income jumped 125% to $124 million, above the company’s $90 million-$100 million guidance range. Victoria’s Secret received more than $140 million in IEEPA tariff refunds, covering over 95% of tariffs paid, and ended the quarter with $522 million in cash. The company expects third-quarter sales of $1.57 billion-$1.60 billion and adjusted results ranging from a loss of $0.09 per share to earnings of $0.01. It raised fiscal 2026 sales guidance to $7.10 billion-$7.18 billion from $7.03 billion-$7.13 billion, but the new range remained below the $7.201 billion analyst estimate. Management said margin expansion would slow in the second half as holiday promotions and higher costs offset earlier benefits.