Victoria's Secret & Co. dropped 17.4% in pre‑market trading on Thursday, a move isolated from broader market activity as the S&P 500 was flat, the Dow Jones edged higher and the Nasdaq slipped slightly.
The decline followed the release of second‑quarter 2026 results. Adjusted earnings per share came in at $0.95, topping the Wall Street consensus of $0.75 by $0.20. Net sales reached $1.61 billion, marginally below the $1.62 billion forecast. The company disclosed that operating profit was "substantially inflated" by more than $140 million in one‑time refunds tied to IEEPA tariffs.
Looking ahead, Victoria's Secret projected third‑quarter operating profit of $10‑20 million, well under the midpoint analyst estimate of $24.4 million, and revenue of $1.57‑1.60 billion. Full‑year 2026 revenue guidance of $7.10‑7.18 billion aligns closely with the consensus estimate of $7.14 billion.
In the weeks preceding the report, major banks JPMorgan, Morgan Stanley and UBS, along with advisory firm Telsey Advisory, raised their target prices for the stock. CEO Hillary Super described the quarter as one of "crescimento amplo" (broad‑based growth) and reiterated confidence in the company’s turnaround plan.
The sharp share slide reflects investor concerns over the reliance on one‑time tariff refunds and the subdued profit outlook, despite the earnings beat and stable full‑year revenue guidance.
