NEW YORK - Victoria's Secret & Co. (NYSE:VSCO) shares gained 2.3% in after-hours trading on Tuesday after the lingerie retailer reported better-than-expected third-quarter results and raised its full-year guidance.

The company posted an adjusted loss of $0.50 per share for the quarter ended November 2, beating analyst estimates of a $0.65 loss. Revenue rose 7% YoY to $1.35 billion, surpassing the consensus forecast of $1.29 billion.

Victoria's Secret's sales growth marked its best quarterly performance since 2021, with broad-based strength across all regions, channels, and major merchandise categories. North American sales increased by mid-single digits, while international business grew over 20%.

"I am very encouraged by the strength of our third quarter business and the positive, early customer response to our holiday merchandise assortments," said CEO Hillary Super. She noted that the company's momentum continued through Black Friday and Cyber Monday.

Total (EPA: TTEF ) comparable sales for the quarter increased 3% YoY. The company's disciplined inventory management and cost control efforts helped improve margins compared to the previous year.

Looking ahead, Victoria's Secret raised its full-year 2024 outlook. The company now expects net sales to grow 1% to 2%, up from its previous guidance of a 1% decline. Adjusted operating income is forecast between $315 million and $345 million, higher than the prior range of $275 million to $300 million.

For the fourth quarter, Victoria's Secret projects earnings per share of $2.00 to $2.30, compared to analyst estimates of $2.09. The company anticipates Q4 net sales to increase 2% to 4% YoY.

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