Victoria’s Secret shares plunge 18% on weak third-quarter profit outlook

  • Victoria’s Secret shares fell 18% after its second-quarter results and third-quarter guidance.
  • $0.95 adjusted EPS exceeded the $0.77 consensus, while revenue reached $1.61 billion.
  • Fiscal 2026 revenue guidance rose to $7.1 billion-$7.18 billion from $7.03 billion-$7.13 billion.

Victoria’s Secret shares fell 18% to $69.61 in premarket trading Thursday after the company issued a weak third-quarter operating income outlook despite a strong second-quarter earnings beat. Adjusted earnings per share rose to $0.95 from $0.33 a year earlier, exceeding the $0.77 analyst consensus, while revenue increased 10% to $1.61 billion, just below the $1.62 billion estimate. Comparable sales rose 9%, ahead of the 8.8% forecast but below the 13% growth recorded in the first quarter. Victoria’s Secret projected third-quarter sales of $1.57 billion to $1.6 billion, but its $15 million operating income midpoint was well below Wall Street’s $24.4 million expectation. Chief Executive Hillary Super said the company would increase marketing investment. Fiscal 2026 revenue guidance was raised to $7.1 billion-$7.18 billion, while adjusted operating income guidance increased to $560 million-$590 million. The stock had gained 57% year to date through Wednesday’s close before the premarket decline.

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