Victoria's Secret (VSCO) AI Stock Analysis

• Market Cap: $4.86B
• Dividend Yield: N/A
• Average Volume (3M): 2.61M
• Price to Earnings (P/E): 29.4
• Beta (1Y): 2.12
• Revenue Growth: 2.97%
• EPS Growth: 9.85%
• Country: US
• Employees: 13,000
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Retail
• EPS (TTM): -0.27
• Shares Outstanding: 80,268,920
• 10 Day Avg. Volume: 1,976,672
• 30 Day Avg. Volume: 2,614,962
• 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: 0.60
• Enterprise Value/Revenue: 0.46
• Enterprise Value/Gross Profit: 1.25
• Enterprise Value/Ebitda: 5.23
• 1Y Price Target: $55.40
• Price Target Upside: -7.45% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11
• EPS Forecast (FY): 2.67
• Revenue Forecast (FY): $6.50B

• Rating: 71 Outperform
• Price Target: $66.00 ▲(10.26% Upside)

Victoria's Secret's stock score is driven by strong earnings performance and positive technical indicators, despite financial leverage concerns and valuation challenges. The positive earnings call sentiment and raised guidance further bolster the outlook, although overbought technical signals suggest caution.

Positive Factors

Brand strength & engagement

Sustained consumer engagement from the flagship fashion show and large social audience enhances brand equity and awareness. This durable marketing moat supports customer acquisition, pricing power, and omnichannel conversion over quarters, aiding long-term demand and product launches.

Free cash flow growth

Material FCF improvement strengthens financial flexibility, enabling reinvestment, deleveraging, or strategic initiatives. Consistent positive cash conversion supports capital allocation and resilience to cyclical retail swings, making operational improvements more sustainable over multiple quarters.

International digital expansion

Rapid international and China digital growth diversifies revenue away from mature US markets and taps higher-growth channels. This structural expansion can lift company-wide top-line growth, margin mix, and scale efficiencies over time, reducing dependence on domestic retail trends.

Negative Factors

High financial leverage

Significant leverage constrains strategic flexibility and raises refinancing and interest-rate risks. High debt increases vulnerability to revenue or margin shocks, limiting capital for brand investment or acquisitions and potentially forcing operational trade-offs over the medium term.

Low net profitability

A thin net margin after stable gross margins indicates elevated SG&A, interest, or other operating inefficiencies. Persistent low profitability reduces retained earnings available for reinvestment and makes returns sensitive to cost pressures, limiting durable shareholder value creation.

Tariff and SG&A margin pressure

Ongoing tariff exposure and rising store labor/SG&A can structurally compress margins if sustained. Material tariff-related cost shocks and higher operating costs erode pricing leverage and could necessitate permanent margin trade-offs or accelerated cost initiatives over multiple quarters.

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 through multiple channels, with its primary income stemming from the sale of lingerie and related apparel. The company operates brick-and-mortar retail stores, an e-commerce platform, and a catalog business. Key revenue streams include direct sales from retail locations and online sales, where customers can purchase items directly from the company's website. Additionally, Victoria's Secret has developed partnerships with various brands and influencers to enhance its marketing reach and drive sales. The company's loyalty program also contributes to its revenue by encouraging repeat purchases. Seasonal promotions and exclusive collections further bolster sales, attracting a diverse customer base.

Victoria's Secret Financial Statement Overview

Summary

Victoria's Secret is experiencing modest revenue growth and stable gross margins, but profitability remains a concern with low net margins. The balance sheet shows high leverage, posing financial risk, though cash flow generation is improving, providing some financial flexibility.

Income Statement

Victoria's Secret shows a modest revenue growth of 1.995% TTM, indicating a recovery from previous declines. The gross profit margin remains stable at around 36.66%, but the net profit margin is relatively low at 2.67%, suggesting limited profitability. EBIT and EBITDA margins are moderate, reflecting operational efficiency challenges.

Balance Sheet

The company has a high debt-to-equity ratio of 4.88 TTM, indicating significant leverage, which could pose financial risk. Return on equity is decent at 26.07%, showing effective use of equity. However, the equity ratio is low, highlighting potential vulnerability in asset financing.

Cash Flow

Free cash flow growth is strong at 27.69% TTM, demonstrating improved cash generation. The operating cash flow to net income ratio is 0.29, indicating moderate cash conversion efficiency. The free cash flow to net income ratio of 0.56 suggests reasonable cash flow support for earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.39B	6.23B	6.18B	6.34B	6.79B	5.41B
Gross Profit	2.34B	2.28B	2.24B	2.26B	2.76B	1.57B
EBITDA	561.77M	565.00M	530.00M	751.00M	1.17B	226.00M
Net Income	170.64M	165.00M	109.00M	348.00M	646.00M	-72.00M
Balance Sheet
Total Assets	5.13B	4.53B	4.60B	4.71B	4.34B	4.23B
Cash, Cash Equivalents and Short-Term Investments	249.00M	227.00M	270.00M	427.00M	490.00M	335.00M
Total Debt	3.19B	2.70B	2.70B	2.79B	2.64B	2.07B
Total Liabilities	4.45B	3.87B	4.16B	4.31B	4.09B	3.34B
Stockholders Equity	653.00M	640.00M	417.00M	383.00M	257.00M	891.00M
Cash Flow
Free Cash Flow	309.00M	247.00M	133.00M	273.00M	682.00M	547.00M
Operating Cash Flow	500.00M	425.00M	389.00M	437.00M	851.00M	674.00M
Investing Cash Flow	-183.00M	-153.00M	-254.00M	-555.00M	-169.00M	-123.00M
Financing Cash Flow	-227.00M	-315.00M	-291.00M	58.00M	-527.00M	-465.00M

Victoria's Secret Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 59.86
• 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 59.86 is above the 20-day moving average (MA) of 57.91, above the 50-day MA of 48.35, and above the 200-day MA of 29.19, indicating a bullish trend. The MACD of 3.75 indicates Positive momentum. The RSI at 60.52 is Neutral, neither overbought nor oversold. The STOCH value of 51.68 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
ANF	74 Outperform	$4.94B	9.98	40.72%	―	7.57%	1.75%
AEO	74 Outperform	$4.38B	22.28	12.36%	2.09%	-1.15%	-0.98%
BKE	72 Outperform	$2.71B	13.01	41.26%	6.82%	4.67%	3.46%
GES	72 Outperform	$879.28M	16.10	16.57%	6.28%	6.44%	-9.23%
VSCO	71 Outperform	$4.86B	29.36	31.50%	―	2.97%	9.85%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
GCO	59 Neutral	$396.74M	-205.05	-0.13%	―	2.76%	96.01%

Victoria's Secret Corporate Events

Victoria’s Secret Reports Strong Q3 2025 Sales Growth

On December 5, 2025, Victoria’s Secret & Co. reported a 9% increase in net sales for the third quarter of 2025, reaching $1.472 billion, surpassing expectations. The company also raised its full-year 2025 earnings guidance, reflecting strong performance across its brands and channels. The third quarter results showed improved operating and net losses compared to the previous year, driven by a reduced promotional approach and higher regular-priced selling. The company is optimistic about a successful holiday season and long-term growth, focusing on product innovation, brand strength, and customer experience.

The most recent analyst rating on (VSCO) stock is a Hold with a $45.00 price target. To see the full list of analyst forecasts on Victoria’s Secret stock, see the VSCO Stock Forecast page.