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Shares jumped after it named a new CEO.
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Shares of Victoria's Secret (VSCO +0.00%) were surging today after the struggling apparel company named a new CEO, Hillary Super. Investors seem to be hopeful that the move will lead to a turnaround for the business.
As of 1:17 p.m. ET on Wednesday, the stock was up 14.6% on the news.
Victoria's Secret said this morning that Super would replace Martin Waters as CEO and member of the board, taking over on Sept. 9.
Super was most recently the CEO of Savage X Fenty, the intimates and accessories brand, and global CEO of Anthropologie, which is owned by Urban Outfitters. The company said she brings three decades of merchandising expertise, with board chair Donna James adding, "VS&Co welcomes Hillary as our new CEO to power the business' next chapter and deliver the foremost tenet of our transformation strategy: accelerating growth in our core business in North America."
Separately, the company reported preliminary second-quarter results that were slightly better than guidance, with sales falling 1% to 2%, compared to guidance for a 1% to 3% decline.
Even better, adjusted earnings per share are on track to be well ahead of guidance, coming in at $0.34 to $0.39, compared to its forecast of $0.05 to $0.20.
Victoria's Secret is a shadow of its former self and is worth a fraction of what it was at its peak roughly a decade ago, when it was the cornerstone of L Brands.
Getting back to that status is unlikely as the market for women's intimates has changed and new competition has entered the arena, but there are potential improvements to be made in the business. Getting back to sales growth is one of them.
Keep an eye on new initiatives from Super as she takes over; investors could respond favorably to further changes at the apparel stock.