Victoria's Secret & Co. (NYSE: VSXY) just attracted one of the more confusing earnings reactions of the year. The retailer beat Wall Street's earnings estimate comfortably on Sept. 3. Sales were up, adjusted net income soared, and earnings per share beat analysts’ expectations. Yet shares tumbled sharply in the aftermath.
Recognizing just how far this stock has come is important to understand why investors are so jumpy. The question is whether the sell-off was warranted, or whether, given the company’s recent turnaround, expectations simply got too high.
