Why Victoria's Secret Stock Jumped Sharply at the Open Today
Shares of Victoria's Secret (NYSE: VSCO), the iconic lingerie retailer, were higher by roughly 14% at 10:30 a.m. ET on Thursday. That quick advance was largely a result of the company's earnings release after the close on Wednesday. There are multiple layers here that need to be examined to understand why investors were so impressed.
Victoria's Secret earned $0.81 per share in the third quarter, down from $0.82 in the same quarter of 2020, a year that was severely impacted by the pandemic. That doesn't look like a good comparison until you note that the company itself was expecting earnings between $0.60 and $0.70 per share. So there's clearly more to understand here, considering that Victoria's Secret has been working to turn its business around for a number of years in the face of increasing competition and an image that some view as outdated.
Image source: Getty Images.
Source Fool.com
