By Senad Karaahmetovic

After the better-than expected Q1 adjustedEPS, shares of Victoria’s Secret rose more than 8 percent in premarket trades Wednesday.

Adjusted EPS was $1.11 for the lingerie and beauty retailer, up from $1.97 the previous year and higher than the analyst consensus at 84c per share. According to analyst estimates, net sales reached $1.48billion. This is 4.5% less YoY.

Direct comparable sales fell 8% compared to the 25% increase in same-period last year. Comparable sales in stores were down by 3%, as compared with 3% growth during the same quarter last year.

For the second quarter, Victoria’s Secret expects EPS in the range of 95c to $1.25, while analysts were looking for $1.21 per share. Comparatively to $153.7million, operating income can be expected to range from $125 to $155 millions.

According to the company, Q2 2022 sales will be higher than last year’s $1.61 billion.

Ike Boruchow, analyst at Wells Fargo, lowered the price target from $70.00 to $60.00.

“Recovery story remains undervalued, turnaround continues to unfold. While we expect some skeptics to poke holes in softened FY outlook, VSCO has showed us the brand turnaround remains on track despite navigation of the external environment,” the analyst wrote.

Lorraine Hutchinson from BofA reiterated her Buy rating along with a $75.00 target for the share price.

“We are encouraged by the underlying progress of its brand overhaul and its myriad initiatives to drive sales and margin improvement in 2H22, despite a more challenging F22 across the board for specialty retail,” Hutchinson told clients.