Victoria’s Secret rallies 13% to hit 2-year high after robust Q3 earnings forecast, stock up 62% YTD | Stock Market News

Victoria’s Secret & Co. rallied to the highest in more than two years on Friday on signs the largest US lingerie maker’s turnaround is gaining steam.

Shares of Victoria’s Secret rose as much as 13%, hitting the highest level since May 2022, before paring some of the gain. The advance adds to the 62% gain the stock had already posted this year through Thursday’s close, more than three times the rise of the Russell 2000 Index over the same period.

Revenue will climb as much as 2% this fiscal year, Victoria’s Secret said in its quarterly report released Thursday. That’s up from a previous outlook calling for a drop of 1%. Annual adjusted operating income is expected to be as much as $345 million, a 15% bump from what the company said earlier this year.

The company also reported third-quarter sales that topped Wall Street expectations and said shoppers had an early positive response to its holiday merchandise.

It’s the company’s first earnings report under Hillary Super, who was named chief executive officer in August. The stock has surged since Victoria’s Secret poached her away from Rihanna’s lingerie brand, signaling optimism she’ll be successful in reigniting the company’s performance.

Victoria’s Secret has been struggling for years, dogged by falling sales and increased competition from upstart lingerie brands. It’s also looking to move on from allegations of workplace misconduct.

U.S. stocks are drifting around their records Friday after data suggested the job market remains solid enough to keep the economy going, but not so strong that it raises immediate worries about inflation.

The S&P 500 rose 0.2% and was just above its all-time high set on Wednesday. It’s rolling toward the close of a third straight winning week in what’s likely to be one of its best years since the 2000 dot-com bust. The Dow Jones Industrial Average was down 40 points, or 0.1%, as of 11:30 a.m. Eastern time, and the Nasdaq composite climbed 0.6%.

Stocks held relatively steady as the latest jobs report strengthened expectations among traders that the Federal Reserve will cut interest rates again at its next meeting in two weeks. While the report showed U.S. employers hired more workers than expected last month, it also said the unemployment rate unexpectedly ticked up to 4.2% from 4.1%.

Several retailers offered encouragement after delivering better-than-expected results for the latest quarter.

Ulta Beauty rallied 9.2% after topping expectations for both profit and revenue. The opening of new stores helped it boost its revenue, and it raised the bottom end of its forecasted range for sales over this full year.

Lululemon stretched 17.7% higher following its own profit report. It said stronger sales outside the United States helped it in particular, and its earnings topped analysts’ expectations.

Retailers overall have been offering mixed signals on how resilient U.S. shoppers can remain amid the slowing job market and still-high prices. Target gave a dour forecast for the holiday shopping season, for example, while Walmart gave a much more encouraging outlook.

A report on Friday suggested sentiment among U.S. consumers may be improving more than economists expected. The preliminary reading from the University of Michigan’s survey hit its highest level in seven months. The survey found a surge in buying for some products as consumers tried to get ahead of possible increases in price due to higher tariffs that President-elect Donald Trump has threatened.

Bitcoin, which hit the $100,000 mark for the first time on Thursday as investors bet on a friendly U.S. regulatory shift, ran into profit-taking. It tumbled as far as $92,092 and was last down 0.15% on the day at $98,871.

“This spike in volatility over the last 24 hours has the hallmarks of a classic blow-off top,” said Tony Sycamore, analyst at IG.

Oil prices fell as the decision from OPEC to delay a planned hike in output to April highlighted concerns about weak demand. U.S. crude fell 1.42% to $67.34 a barrel and Brent dropped to $71.14 per barrel, down 1.32% on the day. [O/R]

Gold prices inched lower on Friday, down 0.1% to $2,629 per ounce, headed for a second straight week of declines.