Shares of Victoria's Secret & Co (VSCO) surged 6.52% in pre-market trading on Friday. The lingerie retailer reported better-than-expected third-quarter results and raised its fiscal 2024 net sales guidance, fueling investor optimism.

Victoria's Secret posted Q3 revenue of $1.35 billion, exceeding analyst expectations of $1.29 billion. The company also reported an adjusted loss per share of 50 cents, lower than the expected loss of 63 cents. Encouraged by the progress across both Victoria's Secret and PINK brands, the company raised its fiscal 2024 net sales forecast to an increase of around 1% to 2%, up from its prior outlook of a 1% decline.

Analysts at Telsey Advisory Group maintained a "Hold" rating on VSCO but noted that the new CEO Hillary Super's experience should help evolve the brand positioning and drive sustainable growth and profitability improvements over time, although work remains on the PINK brand.