Victoria’s Secret stock opened 20% up on Wednesday: what happened?

Victoria’s Secret & Co (NYSE: VSCO) named Hillary Super its new chief executive on Wednesday.

Investors are cheering the news as Super is a seasoned retail executive who has previously held top positions at the likes of Savage X Genty (music star Rihanna’s fashion line) and Anthropologie.

A 20% increase in VSCO share price this morning suggests the market has confidence in its ability to accelerate growth and improve shareholder value.

Part of the rally in Victoria’s Secret stock is related to the upbeat preliminary quarterly results the lingerie retailer reported today.

Who is Hillary Super the new CEO of Victoria’s Secret?

Hillary Super will assume the top role at Victoria’s Secret on September 9^th. Members of the company’s board are confident that her merchant leadership capabilities will help create value.

Martin Water – the departing chief executive will remain with the apparel and beauty retailer as an advisor through August 31^st.

Financial and administrative head Timothy TJ Johnson will serve as the interim CEO of Victoria’s Secret through September 8^th. According to the company’s press release today:

Now is the right time to take the next step on our journey with new merchant-operator leadership to fully capitalise on the opportunities ahead for VS&CO. The Board will work closely with TJ and the leadership team to ensure a smooth transition.

Shares of Victoria’s Secret are down more than 20% versus their high in mid-February.

Victoria’s Secret second-quarter preliminary results

Victoria’s Secret now expects its adjusted per-share earnings to fall between 34 cents and 39 cents in the second quarter. Analysts, in comparison, were at 16 cents per share only.

The New York listed firm projected up to $62 million in adjusted operating income as well – significantly above $40.7 million that experts had forecast.

VSCO attributed the strength in its second quarter to improved trends in stores as well as digital channels.

Heading into today, Wall Street had a consensus “hold” rating on Victoria’s Secret stock with an average price target of $19.17.

Shares of the retailer are already trading well above that price on Wednesday.