Stock Story -
What Happened: Shares of intimatewear and beauty retailer Victoria’s Secret (NYSE:VSCO) jumped 21.8% in the morning session after the company announced the appointment of Hillary Super as Chief Executive Officer and Board Member, effective September 9, 2024. Timothy (TJ) Johnson, VSCO's Chief Financial and Administrative Officer, will serve as interim CEO through September 8, 2024. Most recently, Super served as CEO of Savage X Fenty. Prior to that, she was Global CEO of Anthropologie Group, an Urban Outfitters (NASDAQ:URBN) Company.
Separately, the company provided preliminary guidance for the Q2 2024 quarter. Management expects net sales, adjusted operating income, and adjusted diluted earnings per share to "fall within or exceed the previously issued guidance range." This suggests there will be no major surprises when the company officially reports earnings for the second quarter.
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What is the market telling us: Victoria's Secret (NYSE:VSCO)'s shares are quite volatile and over the last year have had 46 moves greater than 5%. But moves this big are very rare even for Victoria's Secret and that is indicating to us that this news had a significant impact on the market’s perception of the business.
The biggest move we wrote about over the last year was 5 months ago, when the stock dropped 32.1% on the news that the company reported fourth-quarter results with same-store sales and revenue missing expectations. In addition, its full-year revenue and operating income guidance missed analysts' expectations, with the latter quite a large amount below expectations. On the other hand, gross margin outperformed and led to a narrow EPS beat vs Wall Street's estimates. Overall, this was a pretty poor quarter for Victoria's Secret with the guidance surely dragging shares down.
Victoria's Secret is down 19.8% since the beginning of the year, and at $21.72 per share it is trading 28.8% below its 52-week high of $30.50 from February 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 $512.
![Victoria's Secret (VSCO) Stock Trades Up, Here Is Why](https://d68-invdn-com.investing.com/content/picf43831239f6ebaaba9e2a67b08610743.jpeg)