Victoria's Secret & Co. (NYSE:VSCO) shares moved higher before Wednesday’s opening bell as the specialty retailer reported first quarter revenue above guidance and maintained its full-year sales outlook.
For the quarter, revenue of $1.35 billion was above guidance of $1.3 billion to $1.33 billion and beat Street estimates of $1.34 billion.
Comparable sales decreased by 1% for the quarter, and the company ended the quarter with 1,378 stores, a decrease of 9 stores from the previous quarter.
Adjusted earnings per share were $0.09, in line with estimates.
Operating income was $20 million, down from $26 million in the year-ago quarter, but adjusted operating income was $32 million, exceeding the guidance range of $10 million to $30 million.
The company also narrowed its net loss to $2 million or $0.02 per share, down from a net loss of $4 million or $0.05 in the first quarter of 2024.
For the full-year, the company lowered its operating income outlook to $270 million to $320 down from its earlier guidance range of $300 million to $350 million, to reflect an estimated tariff impact of approximately $50 million.
Victoria’s Secret continues to expect 2025 sales in the range of $6.2 billion to $6.3 billion.
“We remained disciplined on the fundamentals and execution in the quarter driving sales and operating income results that exceeded our expectations,” Victoria’s Secret CFO Scott Sekella said in a statement.
“Though we recognize the macro environment is uncertain, we will continue to be disciplined in controlling costs and will remain agile, reading and reacting to what the customer is telling us to ensure we are building upon our solid foundation and realizing the full potential of our globally recognized brands.”
Shares of Victoria’s Secret added 2.7%, just shy of $23, shortly before US markets opened on Wednesday.