Victoria's Secret (VSCO) AI Stock Analysis

• Market Cap: $1.69B
• Dividend Yield: N/A
• Average Volume (3M): 3.39M
• Price to Earnings (P/E): 10.6
• Beta (1Y): 1.73
• Revenue Growth: 1.45%
• EPS Growth: 59.09%
• Country: US
• Employees: 13,000
• Sector: Consumer Cyclical
• Sector Strength: 68
• Industry: Apparel - Retail
• EPS (TTM): 0.09
• Shares Outstanding: 79,852,500
• 10 Day Avg. Volume: 2,926,178
• 30 Day Avg. Volume: 3,390,296
• PEG Ratio: 8.53
• Price to Book (P/B): 2.24
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 6.99
• Enterprise Value/Market Cap: 2.46
• Enterprise Value/Revenue: 0.17
• Enterprise Value/Gross Profit: 1.84
• Enterprise Value/Ebitda: 1.91
• 1Y Price Target: $22.00
• Price Target Upside: 4.07% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 11

• Rating: 61 Neutral
• Price Target: $21.00 ▼(-0.66%Downside)

Victoria's Secret's overall stock score of 61 reflects a mix of stable profitability and cash flow with challenges in revenue growth and leverage. While technical indicators and valuation suggest potential, external factors like tariffs and security incidents pose risks.

Positive Factors

Financial Performance

VSCO reported revenue and operating profit above its previously provided ranges.

International Growth

During the quarter, VSCO's international revenue grew 9% year-over-year, with management expecting continued strength ahead.

Strategic Initiatives

Following recent leadership changes, VSCO is beginning to realize top-line growth improvement across both the VS and PINK brands.

Negative Factors

Market Challenges

Analysts think consistent sales growth and margin expansion will be difficult to achieve from the current position and retain the Underperform rating.

Tariff Impact

The revised EBIT outlook embeds an updated net tariff headwind of $50M translating to 4.7% EBIT margins at the midpoint, which is below the Street at 5.1%.

Technology Challenges

Management is postponing its 1Q call due to a security incident that impacted the company's corporate systems, e-commerce website, and certain functions in Victoria’s Secret and PINK stores.

Victoria's Secret Business Overview & Revenue Model

Company Description

Victoria's Secret & Co. (VSCO) is a leading specialty retailer of women's intimate apparel, personal care, and beauty products. The company operates primarily in the lingerie and beauty sectors, with a wide range of products including bras, panties, lingerie, sleepwear, swimwear, and fragrances. Victoria's Secret is known for its iconic fashion shows and its commitment to providing high-quality products that empower women through a blend of glamour and functionality.

How the Company Makes Money

Victoria's Secret makes money through the sale of its products in both physical retail locations and online platforms. The company's primary revenue streams include sales from its extensive network of stores as well as its e-commerce operations. Additionally, Victoria's Secret benefits from its strong brand recognition and customer loyalty, which drive substantial traffic and sales. The company also engages in strategic partnerships and collaborations to expand its product offerings and market reach, further contributing to its revenue. Seasonal promotions, loyalty programs, and exclusive product lines are employed to enhance customer engagement and sales performance.

Victoria's Secret Financial Statement Overview

Summary

Victoria's Secret exhibits mixed financial performance with declining revenue and high leverage. However, it maintains decent profitability margins and strong cash flow management, indicating moderate financial health.

Income Statement

Victoria's Secret shows a mixed performance in its income statement. The company experienced a decline in total revenue over the past year, dropping from $6.78 billion in 2022 to $6.22 billion in TTM (Trailing-Twelve-Months). Gross profit margin stands at 36.3% for TTM, indicating decent profitability, while the net profit margin is relatively low at 2.7%. The EBIT margin is at 4.9% and EBITDA margin at 7.9%, reflecting moderate operational efficiency. The revenue growth rate has seen a negative trajectory over recent periods, indicating challenges in maintaining sales momentum.

Balance Sheet

The balance sheet analysis reveals some financial stability concerns. Victoria's Secret has a high debt-to-equity ratio of 4.38 in TTM, suggesting significant leverage and potential risk in financial stability. However, the equity ratio has improved to 14.1%, showing an increase in shareholder equity relative to total assets. The return on equity (ROE) is 26%, indicating effective use of equity to generate profits, although this is offset by high leverage.

Cash Flow

The cash flow statement reflects robust operating cash flow of $391 million in TTM, indicating strong cash generation capabilities. The free cash flow to net income ratio is 1.25, showcasing efficient conversion of income into free cash flow. However, free cash flow growth has been inconsistent, with a decline from recent years, suggesting fluctuations in cash flow generation. Despite this, the company maintains a healthy operating cash flow to net income ratio of 2.33, showing sound cash flow management.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	6.23B	6.18B	6.34B	6.78B	5.41B
Gross Profit	2.28B	2.25B	2.26B	2.76B	1.57B
EBITDA	565.00M	530.00M	751.00M	1.17B	226.00M
Net Income	165.00M	109.00M	348.00M	646.00M	-72.00M
Balance Sheet
Total Assets	4.53B	4.60B	4.71B	4.34B	4.23B
Cash, Cash Equivalents and Short-Term Investments	227.00M	270.00M	427.00M	490.00M	335.00M
Total Debt	2.70B	2.70B	2.79B	2.64B	2.07B
Total Liabilities	3.87B	4.16B	4.31B	4.09B	3.34B
Stockholders Equity	640.00M	417.00M	383.00M	257.00M	891.00M
Cash Flow
Free Cash Flow	247.00M	133.00M	273.00M	682.00M	547.00M
Operating Cash Flow	425.00M	389.00M	437.00M	851.00M	674.00M
Investing Cash Flow	-153.00M	-254.00M	-500.00M	-169.00M	-123.00M
Financing Cash Flow	-315.00M	-291.00M	3.00M	-527.00M	-465.00M

Victoria's Secret Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 21.14
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VSCO, the sentiment is Positive. The current price of 21.14 is above the 20-day moving average (MA) of 19.44, above the 50-day MA of 20.45, and below the 200-day MA of 27.53, indicating a neutral trend. The MACD of -0.12 indicates Negative momentum. The RSI at 59.56 is Neutral, neither overbought nor oversold. The STOCH value of 72.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for VSCO.

Victoria's Secret Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BKE	78 Outperform	$2.54B	12.79	44.55%	7.85%	-1.08%	-8.20%
GES	68 Neutral	$697.02M	14.29	2.61%	8.96%	9.02%	-93.19%
AEO	64 Neutral	$1.77B	10.43	12.19%	6.13%	-0.95%	-10.51%
VSCO	61 Neutral	$1.69B	10.61	31.35%	―	1.45%	59.09%
Sector *	57 Neutral	HK$25.90B	4.13	-2.03%	5.77%	-0.31%	-67.64%
FL	55 Neutral	$2.43B	194.63	-12.85%	―	-2.62%	0.93%
CTRN	52 Neutral	$263.50M	―	-29.52%	―	1.85%	-337.77%

Victoria's Secret Corporate Events

Victoria’s Secret Holds Annual Stockholders Meeting

On June 18, 2025, Victoria’s Secret held its annual meeting of stockholders remotely. During the meeting, stockholders elected ten directors to serve until the 2026 annual meeting, approved the compensation of the company’s named executive officers on an advisory basis, and ratified the appointment of Ernst & Young LLP as the independent registered public accounting firm for fiscal year 2025.

The most recent analyst rating on (VSCO) stock is a Hold with a $18.00 price target. To see the full list of analyst forecasts on Victoria’s Secret stock, see the VSCO Stock Forecast page.

Victoria’s Secret Exceeds Q1 2025 Expectations

Victoria’s Secret & Co. reported its first quarter 2025 results, with sales and operating income exceeding expectations. The company maintained its full-year sales guidance despite a slight decrease in comparable sales. The first quarter saw net sales of $1.353 billion and an operating income of $20 million, with a net loss of $2 million. The company remains optimistic about its future, focusing on brand differentiation and customer engagement. For the second quarter, the company forecasts net sales between $1.380 billion and $1.410 billion, with adjusted operating income expected to range from $15 million to $35 million.

The most recent analyst rating on (VSCO) stock is a Hold with a $18.00 price target. To see the full list of analyst forecasts on Victoria’s Secret stock, see the VSCO Stock Forecast page.

Victoria’s Secret Faces IT Security Incident Impact

On May 24, 2025, Victoria’s Secret & Co. detected a security incident involving its IT systems, prompting the temporary shutdown of corporate systems and the e-commerce website. While the incident did not affect the company’s financial results for the first quarter of fiscal 2025, it delayed the earnings release and call webcast. The company expects its financial metrics for the first quarter to meet or exceed the high-end of guidance ranges, but ongoing restoration efforts and potential expenses from the incident could impact future financial results.

The most recent analyst rating on (VSCO) stock is a Hold with a $18.00 price target. To see the full list of analyst forecasts on Victoria’s Secret stock, see the VSCO Stock Forecast page.

Victoria’s Secret Amends Credit Agreement for Flexibility

On May 21, 2025, Victoria’s Secret & Co. amended its Revolving Credit Agreement with JPMorgan Chase Bank and other lenders, extending the maturity date and adjusting terms to improve financial flexibility. The amendment includes a seasonal increase in inventory advance rates, reduced interest rates on borrowings, and changes to borrowing conditions, which could enhance the company’s operational efficiency and financial positioning.

The most recent analyst rating on (VSCO) stock is a Hold with a $18.00 price target. To see the full list of analyst forecasts on Victoria’s Secret stock, see the VSCO Stock Forecast page.

Victoria’s Secret Adopts Shareholder Rights Plan Amidst Market Dislocation

On May 19, 2025, Victoria’s Secret & Co. announced the adoption of a limited-duration shareholder rights plan in response to BBRC International Pte Limited’s substantial accumulation of the company’s stock. The plan, effective immediately and expiring in one year, aims to protect the long-term interests of all shareholders by preventing any person or group from gaining control without paying an appropriate premium. The plan was adopted amidst market dislocation in the retail sector and is not intended to deter fair offers but to ensure shareholders receive equal treatment in any takeover scenario.

The most recent analyst rating on (VSCO) stock is a Hold with a $18.00 price target. To see the full list of analyst forecasts on Victoria’s Secret stock, see the VSCO Stock Forecast page.