Victoria's Secret (VSCO)
NYSE:VSCO
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Victoria's Secret
(NYSE:VSCO)
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Rating:54Neutral
Price Target:
$51.00
▲(1.25% Upside)
Action:ReiteratedDate:03/21/26
The score is held back primarily by elevated leverage and weak technical momentum (price below key moving averages with negative MACD). Offsetting factors include improving cash generation and a broadly positive earnings call with higher FY26 guidance, while valuation (P/E ~28) offers limited downside support without a dividend.
Positive Factors
Improving Cash Generation
Improving operating cash flow and a rebound in free cash flow provide durable internal funding for capex, debt service and reinvestment. Strong cash generation enhances financial flexibility and reduces reliance on external financing, supporting strategic execution over the medium term.
Negative Factors
High Leverage
A debt-heavy capital structure for a retail business limits strategic flexibility and increases exposure to interest costs and refinancing risk. High leverage raises vulnerability to slower demand or margin compression and can constrain investments in stores, marketing and digital initiatives.
Read all positive and negative factors
Positive Factors
Negative Factors
Improving Cash Generation
Improving operating cash flow and a rebound in free cash flow provide durable internal funding for capex, debt service and reinvestment. Strong cash generation enhances financial flexibility and reduces reliance on external financing, supporting strategic execution over the medium term.
Read all positive factors
Victoria's Secret (VSCO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.05B
Dividend YieldN/A
Average Volume (3M)2.89M
Price to Earnings (P/E)28.3
Beta (1Y)2.20
Revenue Growth2.97%
EPS Growth9.85%
CountryUS
Employees13,000
SectorConsumer Cyclical
Sector Strength84
IndustryApparel - Retail
Share Statistics
EPS (TTM)2.77
Shares Outstanding80,467,010
10 Day Avg. Volume2,259,513
30 Day Avg. Volume2,891,912
Financial Highlights & Ratios
PEG Ratio-3.69
Price to Book (P/B)5.31
Price to Sales (P/S)0.69
P/FCF Ratio14.58
Enterprise Value/Market Cap1.57
Enterprise Value/Revenue0.97
Enterprise Value/Gross Profit2.68
Enterprise Value/Ebitda13.87
Forecast
1Y Price Target
$65.33Price Target Upside29.70% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering9
EPS Forecast (FY)3.4
Revenue Forecast (FY)$6.94B
Victoria's Secret Business Overview & Revenue Model
Company Description
Victoria's Secret & Co. operates as a specialty retailer of women's intimate, personal care, and beauty products worldwide. The company offers bras, panties, lingerie, sleepwear, loungewear, and athletic attire and swimwear, as well as fragrances ...
How the Company Makes Money
VSCO makes money primarily by selling branded merchandise to consumers at retail and online. Its core revenue streams are (1) Victoria’s Secret products—most notably bras, panties, lingerie, sleepwear, and loungewear—and (2) PINK products, which f...
Victoria's Secret Key Performance Indicators (KPIs)
Any
Revenue by Segment
Shows how much revenue each business segment generates, highlighting which areas drive growth and profitability.
Shows how much revenue each business segment generates, highlighting which areas drive growth and profitability.
Data provided by:
The Fly
The FlyVictoria's Secret Earnings Call Summary
Earnings Call Date:Mar 05, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Jun 03, 2026
Earnings Call Sentiment Positive
The call was broadly positive: management reported multi-quarter momentum across brands, strong Q4 and full-year top- and bottom-line performance, international acceleration (notably China), and constructive FY2026 guidance. Key challenges include tariff headwinds, sizable one-time Adore Me impairment and restructuring charges, some inventory buildup and modest SG&A investment increases. Management emphasized margin mitigation actions, a healthy balance sheet, and confidence in scaling the Path to Potential strategy.Positive Updates
Quarterly and Full-Year Top-Line Growth
Q4 comp sales +8%; Q4 net sales $2.270B (+8% YoY, +9% excluding prior-year gift card adjustment). Fiscal 2025 net sales $6.553B, up ~6% YoY (excluding the prior-year gift card breakage benefit). Company reported its highest Q4 revenue since becoming an independent public company.
Negative Updates
Tariff Headwinds and Ongoing Uncertainty
Tariffs materially pressured results: management reported ~$85M net tariff pressure for fiscal 2025 overall, approximately $60M (~250 bps) in Q4, and expects incremental gross tariffs of ~$160M in fiscal 2026 (guidance assumes mitigation to ~ $40M net). Q1 2026 faces the largest near-term tariff impact (~175 bps).
Read all updates
Q4-2025 Updates
Positive
Negative
Quarterly and Full-Year Top-Line Growth
Q4 comp sales +8%; Q4 net sales $2.270B (+8% YoY, +9% excluding prior-year gift card adjustment). Fiscal 2025 net sales $6.553B, up ~6% YoY (excluding the prior-year gift card breakage benefit). Company reported its highest Q4 revenue since becoming an independent public company.
Read all positive updates
Company Guidance
The company guided fiscal 2026 net sales of $6.85–6.95 billion (≈+5–6% versus FY25 $6.553B), adjusted operating income of $430–460 million (vs $403M in 2025) implying ~20–50 bps of operating margin expansion, and adjusted diluted EPS of $3.20–3.45 (vs $3.00 in 2025); it expects capex of $220–240 million (≈3% of sales) and free cash flow of $220–250 million. Management assumes incremental gross tariff costs of about $160 million, largely mitigated to an incremental net tariff impact of ≈$40 million, with tariffs concentrated in H1 (Q1 alone ~175 bps headwind). Q1 2026 guidance is net sales $1.490–1.525 billion (~+10–13% vs Q1'25 $1.353B), operating income $32–42 million (vs $32M), gross margin ≈35.5% (≈+30 bps YoY), SG&A ≈33% (vs 32.8%), EPS $0.20–0.30 (vs $0.09), and ending inventories up high single digits. Store counts are expected flat-to-slightly-up, North America “Store of the Future” to ~250 stores (≈30% of fleet, up from 25% in 2025), international SoF ~55% (up from 45%), with a target of ~50% global conversion by 2027.Victoria's Secret Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
44
Neutral
Cash Flow
72
Positive
| Breakdown | Jan 2026 | Jan 2025 | Jan 2024 | Jan 2023 | Jan 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 6.55B | 6.23B | 6.18B | 6.34B | 6.79B |
| Gross Profit | 2.39B | 2.28B | 2.24B | 2.26B | 2.76B |
| EBITDA | 296.89M | 565.00M | 530.00M | 751.00M | 1.17B |
| Net Income | 160.86M | 165.00M | 109.00M | 348.00M | 646.00M |
Balance Sheet | |||||
| Total Assets | 5.01B | 4.53B | 4.60B | 4.71B | 4.34B |
| Cash, Cash Equivalents and Short-Term Investments | 518.00M | 227.00M | 270.00M | 427.00M | 490.00M |
| Total Debt | 2.85B | 2.70B | 2.70B | 2.79B | 2.64B |
| Total Liabilities | 4.10B | 3.87B | 4.16B | 4.31B | 4.09B |
| Stockholders Equity | 856.00M | 640.00M | 417.00M | 383.00M | 257.00M |
Cash Flow | |||||
| Free Cash Flow | 312.00M | 247.00M | 133.00M | 273.00M | 682.00M |
| Operating Cash Flow | 499.00M | 425.00M | 389.00M | 437.00M | 851.00M |
| Investing Cash Flow | -184.00M | -153.00M | -254.00M | -555.00M | -169.00M |
| Financing Cash Flow | -24.00M | -315.00M | -291.00M | 58.00M | -527.00M |
Victoria's Secret Technical Analysis
Positive
50.37
Price Trends
53.29
Negative
52.53
Negative
39.02
Positive
Market Momentum
-0.69
Negative
53.02
Neutral
83.94
Negative
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 50.37 is above the 20-day moving average (MA) of 46.52, below the 50-day MA of 53.29, and above the 200-day MA of 39.02, indicating a neutral trend. The MACD of -0.69 indicates Negative momentum. The RSI at 53.02 is Neutral, neither overbought nor oversold. The STOCH value of 83.94 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for VSCO.
Victoria's Secret Risk Analysis
Victoria's Secret disclosed 42 risk factors in its most recent earnings report. Victoria's Secret reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Victoria's Secret Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $2.82B | 11.34 | 45.18% | 6.82% | 4.67% | 3.46% | |
69 Neutral | $4.42B | 9.11 | 38.98% | ― | 7.57% | 1.75% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
61 Neutral | $344.97M | 22.59 | 2.46% | ― | 2.76% | 96.01% | |
54 Neutral | $4.05B | 28.27 | 22.70% | ― | 2.97% | 9.85% | |
54 Neutral | $3.05B | 20.90 | 12.12% | 2.09% | -1.15% | -0.98% |
* Consumer Cyclical Sector Average
VSCO
Victoria's Secret
50.37
34.09
209.40%
ANF
Abercrombie Fitch
98.39
25.54
35.06%
AEO
American Eagle
18.32
8.01
77.62%
BKE
Buckle
54.83
22.42
69.16%
GCO
Genesco
31.77
13.57
74.56%
Victoria's Secret Corporate Events
Business Operations and StrategyFinancial Disclosures
Victoria’s Secret Tops Guidance, Advances Path to Potential
Positive
Mar 5, 2026
Victoria’s Secret Co. reported on March 5, 2026, that its fourth quarter and full-year 2025 results, for the period ended January 31, 2026, exceeded prior top- and bottom-line guidance, underlining the early success of its Path to Potential...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.