Premarket trading in Victoria’s Secret & Co. shares fell 5.67% to $80.00 on Sept. 3, extending a broader decline after the company revised its third-quarter outlook downward.
The lingerie retailer reported adjusted earnings per share of $0.95 for the second quarter, exceeding analyst expectations of $0.75, while revenue totaled $1.61 billion, slightly below the $1.62 billion consensus. Operating income received a boost of more than $140 million from one-time tariff refunds, the company disclosed.
For the third quarter, Victoria’s Secret guided operating income to a range of $10 million to $20 million, below the $24.4 million street estimate. Management cited higher strategic marketing investments as a factor in the shortfall. Despite the downward revision, the company raised its full-year revenue guidance to between $7.10 billion and $7.18 billion, up from the prior range of $7.03 billion to $7.13 billion. Adjusted operating income guidance was also lifted to $560 million to $590 million, from $550 million to $580 million previously.
Victoria’s Secret shares have surged 269.22% over the past year and gained 54.37% year-to-date, reflecting strong performance prior to the recent pullback. Technical indicators present a mixed signal: the daily Relative Strength Index (RSI) stands at 45.5, indicating a neutral stance, while the weekly RSI reads 59.8, suggesting bullish momentum. The Average Directional Index (ADX) of 34.9 confirms a meaningful trend. Support levels are identified at $82.98, $81.80, and $80.20, with resistance noted at $85.76 and $87.36.
