Victoria's Secret handed over a strong quarterly report card, but investors are expecting more. In the fiscal quarter ending August 1, the company's net sales increased 10% year over year. Although the performance was in line with the company's previous expectations, it was slightly lower than analysts' expectations, and the growth rate was slower than in the previous quarter. However, the company's earnings per share exceeded analysts' expectations and raised sales and adjusted operating profit targets for the whole year. The slowdown in sales growth appears to have raised investors' concerns, causing the stock to drop about 12% in early Thursday trading. Notably, the stock's cumulative increase during the year was still as high as 57% before the close of trading on Wednesday. Still, analysts don't think there's any need to worry too much about this. Neil Sanders, managing director of research firm GlobalData, wrote in a note to clients: “This is yet another strong quarter for Victoria's Secret, further underscoring the resilience of its recovery.” Jefferies analyst Corey Tallow said that the decline in stock prices may be more due to investors' expectations being too high than the poor performance actually announced by the company.

Victoria's Secret handed over a strong quarterly report card, but investors are expecting more. In the fiscal quarter ending August 1, the company's net sales increased 10% year over year. Although the performance was in line with the company's previous expectations, it was slightly lower than analysts' expectations, and the growth rate was slower than in the previous quarter. However, the company's earnings per share exceeded analysts' expectations and raised sales and adjusted operating profit targets for the whole year. The slowdown in sales growth appears to have raised investors' concerns, causing the stock to drop about 12% in early Thursday trading. Notably, the stock's cumulative increase during the year was still as high as 57% before the close of trading on Wednesday. Still, analysts don't think there's any need to worry too much about this. Neil Sanders, managing director of research firm GlobalData, wrote in a note to clients: “This is yet another strong quarter for Victoria's Secret, further underscoring the resilience of its recovery.” Jefferies analyst Corey Tallow said that the decline in stock prices may be more due to investors' expectations being too high than the poor performance actually announced by the company.