Investing.com -- Victoria’s Secret & Co. (NYSE: VSCO) reported better-than-expected third quarter results on Thursday, with the lingerie retailer raising its full-year outlook as its turnaround strategy shows signs of success.

The company posted an adjusted loss of $0.27 per share for the third quarter, significantly better than analysts’ expectations of a $0.59 loss. Revenue climbed 9% YoY to $1.47 billion, exceeding the consensus estimate of $1.41 billion. Comparable sales increased 8% during the quarter.

Shares of Victoria’s Secret surged 11.3% following the announcement as investors responded positively to both the earnings beat and raised guidance.

"We delivered a standout third quarter, with outperformance on net sales and earnings per share, exceeding the high-end of our guidance," said Hillary Super, VS&Co Chief Executive Officer. "These outstanding results reflect disciplined execution of our Path to Potential strategy."

The company reported adjusted gross margin expansion of 170 basis points, which it attributed to reduced promotional activity and higher regular-priced selling. Victoria’s Secret’s adjusted operating income reached breakeven, compared to an operating loss of $28 million in the same quarter last year.

Looking ahead, Victoria’s Secret raised its full-year outlook, now expecting revenue between $6.45 billion and $6.48 billion, up from its previous guidance of $6.33 billion to $6.41 billion and above analyst estimates of $6.39 billion. The company also increased its adjusted earnings forecast to $2.40-$2.65 per share, compared to the consensus of $2.13.

For the fourth quarter, Victoria’s Secret projects revenue between $2.17 billion and $2.2 billion, with adjusted earnings per share of $2.20 to $2.45.

Scott Sekella, Chief Financial and Operating Officer, noted: "We remain focused on managing costs while prioritizing investments in product innovation, brand strength, and customer experience."