Victoria’s Secret’s embrace of its sexy roots powered strong sales and a huge spike in its stock on Tuesday — a turnaround from weak profits blamed on its doomed attempt at going woke.
A strong earnings report drove the company’s stock 48% higher as of Tuesday afternoon.
The 49 year-old retailer notched a 15% sales increase in the first quarter and raised its full-year guidance.
“We are increasingly confident in the trajectory of the business,” CEO Hillary Super said in a statement.
She’s been spearheading Victoria’s Secret’s return to its sultry origins after a woke rebrand during the #MeToo movement alienated loyal customers.
Bra sales are now driving the business, Super said, with customers often adding other items to their purchases and returning to stores more frequently.
At the same time, 19% of the company’s tradeable shares are shorted, according to a Bloomberg report that cited data from S3 Partners, making the stock more prone to sharp swings.
The company said Tuesday that it repurchased 2.2 million shares of its stock for $100 million at an average price of $45.27 in the first quarter.
The past year has seen Victoria’s Secret stock — which now trades under the ticker VSXY, part of its recent rebrand — spike about 160%.
Super’s been trying to strike a middle ground between ultra-sexy and annoyingly woke, following product misfires and customer disgust at revelations over longtime chairman Les Wexner’s Epstein ties.
Previous management shied away from the company’s DNA, going so far as to cancel its iconic fashion show. After a predecessor brought the show back, Super is focusing on products like a new underwire bra with extra-comfy fabric. And last year, she launched the company’s “Unapologetically Sexy” campaign.
Revenues for the quarter ended May 2 increased to $1.56 billion from $1.35 billion from a year ago while the company believes its sales for the year will increase to as much as $7.13 billion from a previous high of $6.95 billion.