What Happened?
Shares of intimatewear and beauty retailer Victoria’s Secret (NYSE: VSCO) jumped 3.3% in the morning session after the company announced a significant product innovation within its top-selling collection.
Victoria's Secret introduced the new "FlexFactor Lightly Lined Plunge Demi Bra" to its flagship "Body by Victoria" line. The company highlighted the new bra's technology, which included a flexible titanium underwire and memory foam designed to enhance comfort and support. This launch was significant as the "Body by Victoria" collection represented a major part of the brand's business, with the company noting one bra from the collection was sold every five seconds. The move was also supported by a broader rally in the consumer retail sector, which was lifted by recent data showing resilient consumer spending, creating a positive backdrop for apparel companies.
After the initial pop the shares cooled down to $21.49, up 1.5% from previous close.
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What Is The Market Telling Us
Victoria's Secret’s shares are extremely volatile and have had 43 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 6 days ago when the stock gained 4.1% as 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.
Victoria's Secret is down 46.8% since the beginning of the year, and at $21.49 per share, it is trading 55.9% 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 $505.53.
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