Victoria's Secret (VSCO) AI Stock Analysis

• Market Cap: $2.91B
• Dividend Yield: N/A
• Average Volume (3M): 2.24M
• Price to Earnings (P/E): 19.6
• Beta (1Y): 2.11
• 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: 2,659,421
• 30 Day Avg. Volume: 2,239,035
• 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: 1.46
• Enterprise Value/Revenue: 1.02
• Enterprise Value/Gross Profit: 2.91
• Enterprise Value/Ebitda: 20.73
• 1Y Price Target: $29.00
• Price Target Upside: -17.31% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 10
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: $41.00 ▲(16.91% Upside)

Victoria's Secret's stock score is driven by strong earnings performance and bullish technical indicators. Financial stability is supported by healthy gross margins and cash flow, but high leverage and moderate valuation pose risks. The positive earnings call outlook further enhances the score.

Positive Factors

International Expansion

Strong international sales growth indicates successful market penetration and potential for continued revenue expansion in global markets.

Improved Gross Margins

Improved gross margins reflect effective cost management and pricing strategies, supporting long-term profitability and financial health.

Cash Flow Growth

Positive cash flow growth enhances financial flexibility, enabling investment in growth initiatives and reducing reliance on external financing.

Negative Factors

High Leverage

Significant leverage increases financial risk, potentially limiting the company's ability to invest in growth and weather economic downturns.

Low Net Profit Margin

Low net profit margins indicate challenges in converting sales into profit, which could impact long-term profitability and shareholder returns.

Governance Challenges

Ongoing governance issues and board disputes may distract management and affect strategic decision-making, impacting long-term company performance.

Victoria's Secret Business Overview & Revenue Model

Company Description

Victoria's Secret (VSCO) is a leading American lingerie, women's wear, and beauty products retailer, renowned for its high-quality products and iconic branding. Founded in 1977, the company has evolved to become a prominent player in the fashion industry, offering a wide range of products including bras, panties, sleepwear, loungewear, sportswear, and beauty items. Victoria's Secret operates through various channels, including physical retail stores, an online presence, and catalog sales, catering to a diverse customer base seeking luxury and comfort in intimate apparel.

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 demonstrates a stable financial position with healthy gross margins and positive cash flow growth. However, challenges include low net profit margins and high leverage, indicating potential financial risk.

Income Statement

Victoria's Secret shows a mixed performance in its income statement. The TTM Gross Profit Margin is healthy at 36.31%, indicating efficient cost management. However, the Net Profit Margin is relatively low at 2.42%, suggesting challenges in converting revenue into profit. Revenue growth is positive at 0.68% TTM, but the EBIT and EBITDA margins have decreased compared to previous years, reflecting potential operational inefficiencies.

Balance Sheet

The balance sheet reveals a high Debt-to-Equity Ratio of 4.23 TTM, indicating significant leverage and potential financial risk. Return on Equity is moderate at 25.34%, showing decent profitability relative to shareholder equity. The Equity Ratio is low, highlighting a reliance on debt financing, which could pose risks if market conditions worsen.

Cash Flow

Cash flow analysis shows a positive trend with a 15.79% growth in Free Cash Flow TTM, indicating improved cash generation. The Operating Cash Flow to Net Income Ratio of 0.29 suggests moderate cash conversion efficiency. The Free Cash Flow to Net Income Ratio of 0.53 indicates a reasonable level of cash flow relative to net income, supporting operational stability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.16B	6.23B	6.18B	6.34B	6.78B	5.41B
Gross Profit	1.46B	2.28B	2.25B	2.26B	2.76B	1.57B
EBITDA	205.08M	565.00M	530.00M	751.00M	1.17B	226.00M
Net Income	-41.77M	165.00M	109.00M	348.00M	646.00M	-72.00M
Balance Sheet
Total Assets	4.75B	4.53B	4.60B	4.71B	4.34B	4.23B
Cash, Cash Equivalents and Short-Term Investments	188.00M	227.00M	270.00M	427.00M	490.00M	335.00M
Total Debt	2.87B	2.70B	2.70B	2.79B	2.64B	2.07B
Total Liabilities	4.04B	3.87B	4.16B	4.31B	4.09B	3.34B
Stockholders Equity	680.00M	640.00M	417.00M	383.00M	257.00M	891.00M
Cash Flow
Free Cash Flow	-404.00M	247.00M	133.00M	273.00M	682.00M	547.00M
Operating Cash Flow	-242.00M	425.00M	389.00M	437.00M	851.00M	674.00M
Investing Cash Flow	-161.00M	-153.00M	-254.00M	-555.00M	-169.00M	-123.00M
Financing Cash Flow	356.00M	-315.00M	-291.00M	58.00M	-527.00M	-465.00M

Victoria's Secret Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 35.07
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 35.07 is above the 20-day moving average (MA) of 33.21, above the 50-day MA of 29.31, and above the 200-day MA of 23.89, indicating a bullish trend. The MACD of 2.12 indicates Negative momentum. The RSI at 59.63 is Neutral, neither overbought nor oversold. The STOCH value of 53.06 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	76 Outperform	$2.90B	14.20	43.13%	6.80%	1.62%	-2.57%
ANF	73 Outperform	$3.30B	6.77	43.30%	―	9.34%	10.61%
AEO	69 Neutral	$2.81B	15.98	12.17%	2.92%	-2.73%	-16.71%
VSCO	69 Neutral	$2.91B	19.62	26.29%	―	2.30%	8.85%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
GES	59 Neutral	$883.55M	168.99	6.23%	6.63%	7.84%	-81.20%
GCO	50 Neutral	$331.10M	―	-4.81%	―	2.66%	-4772.54%

Victoria's Secret Corporate Events

Victoria’s Secret & Co. Q2 Earnings Call Highlights

Victoria’s Secret & Co. recently held its second quarter 2025 earnings call, revealing a generally optimistic outlook despite some challenges. The company reported strong sales growth, improved gross margins, and positive international performance. However, issues such as a digital outage and increased tariff impacts were also discussed. Overall, the positive developments slightly outweighed the negatives, suggesting a promising future for the company.

Victoria’s Secret & Co. Exceeds Q2 2025 Expectations

Victoria’s Secret & Co. is a leading specialty retailer in the fashion industry, known for its modern collections of lingerie, apparel, and beauty products, with a global presence of approximately 1,380 retail stores. In its latest earnings report, the company announced that its second-quarter sales, operating income, and earnings per share exceeded expectations, with a 4% increase in comparable sales. The company also raised its full-year sales guidance. Key financial highlights include net sales of $1.459 billion for the second quarter, a 3% increase from the previous year, and an adjusted operating income of $55 million, surpassing the guidance range. Despite a decrease in operating income compared to the previous year, the company reported a positive net income of $16 million. Looking ahead, Victoria’s Secret & Co. remains optimistic about its growth prospects, focusing on product innovation and customer engagement, while acknowledging potential challenges in the macroeconomic environment.

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.

The most recent analyst rating on (VSCO) stock is a Hold with a $21.00 price target. To see the full list of analyst forecasts on Victoria’s Secret stock, see the VSCO Stock Forecast page.