Victoria’s Secret is hooking shoppers on bras.
They are sticking around to buy everything else
The retailer reported a 15% first-quarter sales gain and raised its full-year outlook. Most Read from The Wall Street Journal Net sales for the three months ended May 2 rose to $1.56 billion from $1.35 billion a year earlier. Same-store sales, which excludes newly opened or closed stores, were up 13%.
The company, which also owns the PINK brand for teens and young adults, swung to a profit of $47.7 million, or 56 cents a diluted share, from a loss of $1.7 million, or 2 cents a share, a year earlier. Both sales and earnings beat Wall Street’s estimates and the company’s guidance, causing shares to soar more than 35% in premarket trading Tuesday. “We are really hitting our stride,” said Chief Executive Hillary Super, who has been fashioning a turnaround at the lingerie and apparel retailer. Super said the sales growth was broad based but really starts with bras, an area where she is trying to reassert the brand’s dominance with new launches such as an underwire bra that is encased in fabric to make it more comfortable. “Bras brought along the other categories,” Super said. “When she buys bras, she’s the stickiest and comes back the most quickly.” Super said Victoria’s Secret launched two new bras, including a strapless, during the recently completed quarter and has more bra launches planned for this year.