Shares of Victoria’s Secret (VSCO) jumped more than 6% in premarket trading Friday after the company reported better-than-expected preliminary first-quarter results.
The lingerie and beauty retailer pre-announced adjusted earnings per share (EPS) of $0.07 to $0.12, beating the company’s forecast of -$0.15 to $0.10 and better than the consensus estimate of -$0. 03.
Net sales are forecast to decline 3% to 4%, also an improvement from the 4% to 6% decline expected.
Victoria’s Secret said April was the company’s strongest month of the quarter, citing “improving trends throughout the quarter.”
“It’s fitting that this report was better than expected amid rising consumer concerns overall and following four recent analyst downgrades to Sell and one VSCO sale initiation, especially following the latest earnings,” BMO Capital Markets analysts said in the report. The note was published after the preliminary announcement.
“Recognizing that this positive surprise continues to represent a decline in earnings, we believe VSCO continues to underperform and trade weakly.”