Victoria's Secret (VSCO) AI Stock Analysis

• Market Cap: $2.10B
• Dividend Yield: N/A
• Average Volume (3M): 3.09M
• Price to Earnings (P/E): 14.7
• Beta (1Y): 1.82
• Revenue Growth: 2.30%
• EPS Growth: 8.85%
• Country: US
• Employees: 13,000
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Retail
• EPS (TTM): 0.33
• Shares Outstanding: 80,164,480
• 10 Day Avg. Volume: 2,482,936
• 30 Day Avg. Volume: 3,091,666
• PEG Ratio: 0.35
• Price to Book (P/B): 4.49
• Price to Sales (P/S): 0.46
• P/FCF Ratio: 11.63
• Enterprise Value/Market Cap: 2.02
• Enterprise Value/Revenue: 0.68
• Enterprise Value/Gross Profit: 1.88
• Enterprise Value/Ebitda: 8.60
• 1Y Price Target: $23.90
• Price Target Upside: -8.92% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 10

• Rating: 72 Outperform
• Price Target: $25.00 ▼(-4.73% Downside)

Victoria's Secret's overall stock score reflects a balanced view of its strengths and challenges. Strong technical indicators and positive earnings call sentiment are offset by financial stability concerns and valuation limitations. The company's ability to navigate tariff impacts and leverage international growth opportunities will be crucial for future performance.

Positive Factors

International Expansion

The significant growth in international sales highlights Victoria's Secret's successful expansion strategy, which can provide a durable revenue stream and reduce reliance on domestic markets.

Product Innovation

Continued product innovation, such as new collections, strengthens brand appeal and customer loyalty, supporting long-term sales growth and competitive positioning.

Gross Margin Improvement

Improved gross margins reflect effective cost management and pricing strategies, enhancing profitability and providing a buffer against cost pressures.

Negative Factors

Revenue Decline

The decline in revenue indicates challenges in maintaining sales momentum, which could impact long-term growth if not addressed through strategic initiatives.

High Leverage

Significant leverage poses financial stability risks, potentially limiting the company's ability to invest in growth opportunities or weather economic downturns.

Increased Tariff Impact

Rising tariff costs could pressure margins and profitability, necessitating strategic adjustments to mitigate long-term financial impacts.

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 and body care products, and accessories under the Victoria's Secret and PINK brands. As of March 2, 2022, it operated approximately 1,400 retail stores. The company was incorporated in 2021 and is headquartered in Reynoldsburg, Ohio.

How the Company Makes Money

Victoria's Secret generates revenue primarily through the sale of lingerie, sleepwear, and beauty products both in-store and online. Key revenue streams include direct retail sales from its extensive network of physical locations and e-commerce platform, as well as catalog sales. The company benefits from brand loyalty and recognition, which drive repeat purchases. Strategic partnerships, such as collaborations with celebrities and influencers, enhance its marketing efforts and expand its customer reach. Seasonal promotions and exclusive product lines also contribute to sales spikes. Additionally, the company's ability to leverage data analytics for targeted marketing and inventory management plays a significant role in optimizing its revenue generation.

Victoria's Secret Financial Statement Overview

Summary

Victoria's Secret shows mixed financial performance with declining revenue and high leverage, but maintains decent profitability margins and strong cash flow management.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.22B	6.23B	6.18B	6.34B	6.78B	5.41B
Gross Profit	2.26B	2.28B	2.25B	2.26B	2.76B	1.57B
EBITDA	494.43M	565.00M	530.00M	751.00M	1.17B	226.00M
Net Income	167.41M	165.00M	109.00M	348.00M	646.00M	-72.00M
Balance Sheet
Total Assets	4.58B	4.53B	4.60B	4.71B	4.34B	4.23B
Cash, Cash Equivalents and Short-Term Investments	138.00M	227.00M	270.00M	427.00M	490.00M	335.00M
Total Debt	2.82B	2.70B	2.70B	2.79B	2.64B	2.07B
Total Liabilities	3.91B	3.87B	4.16B	4.31B	4.09B	3.34B
Stockholders Equity	645.00M	640.00M	417.00M	383.00M	257.00M	891.00M
Cash Flow
Free Cash Flow	209.00M	247.00M	133.00M	273.00M	682.00M	547.00M
Operating Cash Flow	391.00M	425.00M	389.00M	437.00M	851.00M	674.00M
Investing Cash Flow	-157.00M	-153.00M	-254.00M	-500.00M	-169.00M	-123.00M
Financing Cash Flow	-199.00M	-315.00M	-291.00M	3.00M	-527.00M	-465.00M

Victoria's Secret Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 26.24
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 26.24 is above the 20-day moving average (MA) of 25.73, above the 50-day MA of 23.01, and above the 200-day MA of 25.35, indicating a bullish trend. The MACD of 0.91 indicates Positive momentum. The RSI at 57.96 is Neutral, neither overbought nor oversold. The STOCH value of 23.28 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	81 Outperform	3.06B	14.73	46.12%	6.52%	1.62%	-2.57%
ANF	77 Outperform	4.04B	8.13	41.86%	―	9.34%	10.61%
VSCO	72 Outperform	$2.10B	14.68	26.29%	―	2.30%	8.85%
GES	66 Neutral	869.78M	166.60	1.97%	6.74%	7.84%	-81.20%
AEO	66 Neutral	3.04B	17.14	12.76%	2.79%	-2.73%	-16.71%
GCO	57 Neutral	326.67M	-12.36	-4.37%	―	2.66%	-4772.54%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Victoria's Secret Corporate Events

Victoria’s Secret Exceeds Q2 Expectations, Raises Sales Guidance

On August 28, 2025, Victoria’s Secret & Co. reported its second quarter 2025 financial results, revealing sales and operating income that exceeded expectations. The company saw a 4% increase in comparable sales, driven by product innovation and a refreshed leadership team, despite tariff challenges. The company raised its full-year sales guidance, forecasting net sales between $6.330 billion to $6.410 billion, and adjusted operating income between $270 million to $320 million, reflecting optimism about future growth and brand differentiation.

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.

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.