Victoria's Secret stock rallies as it names new chief executive from Rihanna's Savage X Fenty

By Steve Gelsi

Apparel maker also hikes Q2 adjusted earnings target

Victoria's Secret & Co.'s stock was up 20% on Wednesday after the intimate apparel company named Hillary Super as chief executive, effective on Sept. 9, and also raised its second-quarter adjusted earnings estimate.

Super's 30 years in the business prior to Victoria's Secret (VSCO) includes her most recent post as chief executive of Savage X Fenty, which is the fashion line launched by pop music star Rihanna.

Super was also global chief executive officer of Anthropologie, a unit of Urban Outfitters Inc. (URBN), from 2017 to 2021.

Meanwhile, Victoria's Secret ex-Chief Executive Martin Waters will serve as an advisor to the company through Aug. 31. Timothy TJ Johnson, financial and administrative chief at Victoria's Secret, was named interim chief executive through Sept. 8.

Separately, Victoria's Secret said it expects second-quarter adjusted earnings of 34 cents a share to 39 cents a share, well ahead of the FactSet Consensus estimate of 16 cents a share.

The company cited the successful launch of its Victoria's Secret Dream collection, and in its Pink Friday back to campus event in July.

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

"Improving product acceptance and disciplined inventory management led to strong margin performance and our teams continue to relentlessly focus on improving our cost structure, the combination of which has driven year-over-year quarterly operating income growth for the first time since 2021," the company said.

Victoria's Secret plans to release its full second-quarter results on Aug. 29.

Prior to Wednesday's moves, Victoria Secret's stock was down 28.2% in 2024, while the S&P 500 SPX is up by 13.9%.

-Steve Gelsi

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08-14-24 0947ET

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