Victoria's Secret Raises Revenue Guidance as Shares Plunge 20%

Victoria's Secret & Co. raised its annual revenue guidance to a range of $7.1 billion to $7.18 billion, projecting its highest annual sales in seven years. The company reported that second-quarter comparable sales rose 9% and expects third-quarter sales to reach as high as $1.6 billion.

Despite the positive guidance, shares fell 20% in premarket trading on Thursday as investors reacted to a slowing pace of growth. The company also noted it received more than $140 million in tariff refunds during the last quarter.

Chief Executive Officer Hillary Super attributed the current performance to strong demand for the Pink brand and specific bra lines, including Marshmallow and Envy. Super noted that "What stood out was bras and Pink" during the period.