Victoria's Secret & Co

Victoria's Secret & Co. shares fell more than 12% after its third-quarter profit outlook missed Wall Street estimates, overshadowing a second-quarter earnings beat and raised full-year guidance. The company reported second-quarter revenue of $1.61 billion, up 10% year-over-year but slightly below the $1.62 billion expected, while adjusted earnings per share of $0.95 beat the $0.77 estimate. Adjusted operating income rose 125% to $124 million, topping forecasts, and comparable sales grew 9%. For the third quarter, the retailer guided revenue of $1.57 billion to $1.60 billion, roughly in line, but projected operating income of just $10 million to $20 million, well below consensus. Full-year revenue guidance was raised to $7.10 billion to $7.18 billion, and adjusted operating income guidance to $560 million to $590 million, though both remain below analyst projections. Jefferies analysts noted the solid results but said shares had entered the quarter trading at about 15 times earnings, above historical norms, and maintained a Hold rating.