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Victoria's Secret shares fall after Q2 earnings beat
The retailer posted higher adjusted EPS and net sales growth, but comparable sales decelerated to 9% and guidance did not stop the selloff.
Victoria's Secret & Co. beat Wall Street's Q2 earnings estimate for the quarter ended Aug. 1 and raised full year guidance, but the stock slid sharply after the results, highlighting investor unease about the pace of the turnaround, according to MarketBeat Ratings.
The company reported net sales of $1.61 billion, slightly below the $1.62 billion consensus estimate, while still up 10% year over year. Adjusted earnings per share came in at 95 cents, ahead of the 76 cents analysts expected.
Comparable sales rose 9% in the quarter, a slowdown from the 13% comp growth in the prior quarter, a trend investors said they will want to monitor going forward. The article also notes that, despite improving momentum earlier in 2025, results have come in unevenly and the stock has already experienced large swings during the turnaround effort.
MarketBeat Ratings ties the current skepticism to the company's recent history of struggling with declining net sales and narrowing profit margins, and to the turnaround strategy launched in the second half of 2025, including rebuilding the Victoria's Secret bra category, revitalizing the Pink sub brand, expanding into beauty, and modernizing marketing.