By Yasin Ebrahim
Investing.com -- Victoria's Secret climbed in afterhours trading Wednesday after the lingerie retailer said it expected earnings to be towards the high end of its guidance.
Victoria's Secret & Co (NYSE:VSCO) climbed more than 3% in aftermarket hours following the news.
The company said it expected both earnings and operating margins to be towards the high end of the previously communicated guidance range of $0.00 to $0.25 per diluted share, and $10 million and $40 million, respectively. Analysts are expecting the company to report earnings of 13 cents a share when it delivers Q3 results, slated for Nov.16.
The updated guidance was based on a "net sales decline in the high single-digit range compared to last year, which is consistent with the company’s previously communicated guidance," the company said.
The brighter outlook comes a day ahead of the company's investor day, when it is expected to detail its long-term strategic plan to drive up growth aimed at boosting market share in its key categories of bras, intimates and beauty, and expanding its global footprint with a focus on categories and customer groups where its brand is underrepresented.