Victoria’s Secret shares surged to a record high on Tuesday after the lingerie retailer raised its annual outlook following double-digit quarterly revenue growth across its brands.

Shares in the business jumped around 50 per cent earlier in the session, putting the company on track for its strongest day on record, before trading 40 per cent higher at $75.61. The stock had earlier hit a record high of $81.28.

The rally came after Victoria’s Secret lifted its fiscal 2026 net sales forecast to between $7.03 billion and $7.13 billion, up from its previous guidance of $6.85 billion to $6.95 billion.

It also raised its annual adjusted operating income forecast to between $550 million and $580 million, compared with its previous outlook of $430 million to $460 million.

The results mark a boost for chief executive Hillary Super, who took charge in 2024 and has been working to reverse several years of falling sales by cutting back on discounting and repositioning the brand around its historically more provocative image.

Victoria’s Secret has revived its annual runway show after a six-year break, while in May it announced plans to change its New York Stock Exchange ticker from “VSCO” to “VSXY”, stating that “sexy has always been part of our DNA”.

Super said the retailer was seeing momentum across its core brands.

“Victoria’s Secret, PINK, and Beauty are gaining cultural relevance and expanding their customer files, and we have a strong pipeline of product launches, partnerships, and brand moments ahead,” she said.

Sales rose 15 per cent to $1.56 billion in the three months to 2 May, marking the company’s fourth consecutive quarter of growth and beating analyst expectations of $1.52 billion, according to LSEG data.

Victoria’s Secret also posted adjusted earnings of 60 cents per share, ahead of expectations of 30 cents.

The stronger performance comes as US consumer spending remains sharply divided, with higher-income shoppers continuing to spend on discretionary products while lower-income households pull back amid persistent inflation and economic uncertainty.

Victoria’s Secret is also facing activist investor pressure as it works to strengthen sales and rebuild investor confidence.

Telsey Advisory analyst Dana Telsey said the retailer’s strategy was starting to show results.

“The leadership team and strategies are beginning to bear fruit through an evolving assortment across brands, supported by improved messaging and brand storytelling,” she said.

However, the retailer said it expects to take a tariff hit of around $15 million in the current quarter.

According to Ortex data, around 19 per cent of Victoria’s Secret’s publicly available shares are currently shorted, a level some analysts say could leave the stock exposed to a short squeeze.