What Happened?

Shares of intimatewear and beauty retailer Victoria’s Secret (NYSE: VSCO) jumped 4.1% in the afternoon session after the broader market rallied after new economic data showed unexpected strength in U.S. consumer spending, boosting investor confidence in the retail sector. The Commerce Department reported that retail sales rose by a better-than-expected 0.6% in June, rebounding from a decline in the prior month. This news eased concerns about a potential economic slowdown and suggested that shoppers are still willing to spend. 

Also, the second quarter (2025) earnings season got off to a strong start. Quarterly earnings reports released during the week exceeded Wall Street's expectations, fueling investor confidence. Around 50 S&P 500 components reported, with 88% of those exceeding analysts' expectations, FactSet data revealed.

After the initial pop the shares cooled down to $18.51, up 4.6% from previous close.

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What Is The Market Telling Us

Victoria's Secret’s shares are extremely volatile and have had 42 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 3 days ago when the stock dropped 3.1% after it continued a recent downward trend as investors look ahead to the company's upcoming second-quarter earnings announcement. While no specific news was released today, the stock has been under pressure since its last earnings report in June. During that announcement, Victoria's Secret lowered its full-year adjusted operating income guidance, citing an anticipated $50 million impact from tariffs. Investors are also monitoring the potential fallout from a security incident in May that temporarily shut down the company's e-commerce site. Although first-quarter results were not materially affected, the company warned of possible financial impacts in the second quarter due to expenses related to the breach. The stock has been in a technical downtrend, and today's move appears to be a continuation of that negative sentiment as the next earnings date approaches.

Victoria's Secret is down 54.2% since the beginning of the year, and at $18.51 per share, it is trading 62% below its 52-week high of $48.71 from December 2024. Investors who bought $1,000 worth of Victoria's Secret’s shares at the IPO in July 2021 would now be looking at an investment worth $435.53.

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