Victoria's Secret shares jump 40% after earnings beat

Shares of Victoria's Secret surged approximately 40 percent in early trading Tuesday after the intimate apparel retailer reported first-quarter earnings that far exceeded expectations and significantly raised its full-year financial outlook.

The company reported adjusted earnings per share of $0.60 for the quarter ended in early May, double the consensus analyst estimate of $0.30. Revenue rose 15 percent year-over-year to $1.56 billion, surpassing forecasts of $1.52 billion. Net income was $47.7 million, a substantial improvement from a loss of $1.66 million in the same period last year. Comparable store sales increased 13 percent.

Chief Executive Hillary Super said the growth was broad-based, with double-digit increases across the Victoria's Secret, Pink, and beauty brands, as well as across digital, store, and international channels. She noted the company achieved these sales with significantly fewer promotions compared to the prior year and gained market share, particularly among shoppers aged 18 to 24. Super highlighted the bra category as a key anchor for the business, reporting double-digit comparable sales growth there.

Buoyed by the strong performance, management elevated...