Victoria’s Secret shares rise on new CEO, preliminary results from Investing.com

Victoria’s Secret & Co. ( VSCO ) saw its shares rise as much as 20% in premarket trading on Wednesday following the announcement of Hillary Super as the new CEO, effective September 9, 2024, and preliminary second quarter results.

Super, a seasoned retail executive with extensive experience at top brands such as Savage X Fenty and Anthropologie, will succeed Martin Waters in the role.

The market responded positively to Super’s appointment and results. Investors are optimistic about its ability to drive growth and enhance shareholder value.

Donna James, chairman of the board, expressed confidence in Super’s “retailer leadership capabilities” and “intuitive understanding of the consumer landscape”, qualities seen as vital to the company’s next phase of growth.

The management change comes alongside the publication of preliminary results for the second quarter of 2024, which beat expectations.

The company reported projected adjusted operating income of $57 million to $62 million, significantly higher than the previous guidance range of $30 million to $45 million and above the consensus estimate of $40.7 million.

Adjusted earnings per share (EPS) are also expected to beat initial estimates, ranging from $0.34 to $0.39, compared to previous guidance of $0.05 to $0.20. The consensus EPS estimate was $0.16.

Chief Financial and Administrative Officer Timothy Johnson, who is acting CEO, highlighted the company’s strong performance, noting improved sales trends in North America and successful product launches, including the Victoria’s Secret Dream bra collection.

“We were encouraged by the continued sequential improvement in our North American quarterly sales results for the fourth consecutive quarter as sales trends improved in both our stores and digital channels,” he said.

He added: “Improving product acceptance and disciplined inventory management led to strong margin performance, and our teams continue to focus relentlessly on improving our cost structure, the combination of which led to quarterly operating income growth year-over-year year for the first time since 2021.”

Victoria’s Secret plans to share more details during its Aug. 29 earnings call, but the market is already bullish on the brand’s renewed direction under its new leadership.