Victoria's Secret (VSCO) AI Stock Analysis

• Market Cap: $4.37B
• Dividend Yield: N/A
• Average Volume (3M): 2.83M
• Price to Earnings (P/E): 26.9
• Beta (1Y): 2.03
• 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: 4,470,042
• 30 Day Avg. Volume: 2,829,528
• 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: 1.33
• Enterprise Value/Revenue: 0.91
• Enterprise Value/Gross Profit: 2.49
• Enterprise Value/Ebitda: 10.37
• 1Y Price Target: $48.80
• Price Target Upside: -10.88% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11
• EPS Forecast (FY): 2.64
• Revenue Forecast (FY): $6.48B

• Rating: 71 Outperform
• Price Target: $54.00 ▼(-1.39% Downside)

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

Revenue Growth

The 9% increase in net sales indicates strong demand and effective sales strategies, positioning Victoria's Secret for sustained revenue growth.

International Expansion

Strong international sales growth, especially in China, suggests successful global market penetration and diversification of revenue streams.

Brand Engagement

High engagement from the fashion show enhances brand visibility and customer loyalty, supporting long-term brand strength and market presence.

Negative Factors

High Leverage

Significant leverage poses financial risk, potentially limiting strategic flexibility and increasing vulnerability to economic downturns.

Low Profit Margins

Low profit margins suggest limited profitability, which could hinder reinvestment in growth initiatives and impact long-term financial health.

Tariff Impacts

Tariff impacts increase costs and pressure margins, potentially affecting competitive pricing and profitability in the long term.

Victoria's Secret Business Overview & Revenue Model

Company Description

Victoria's Secret (VSCO) is an American lingerie, clothing, and beauty retailer known for its premium products and strong brand presence. The company operates primarily in the women's apparel sector and offers a wide range of products, including bras, panties, sleepwear, loungewear, activewear, and beauty products. Established in 1977, Victoria's Secret became a leading name in lingerie, particularly recognized for its fashion shows and marketing campaigns, which emphasize glamour and femininity.

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: 54.76
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: 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 54.76 is above the 20-day moving average (MA) of 44.30, above the 50-day MA of 37.56, and above the 200-day MA of 25.19, indicating a bullish trend. The MACD of 5.17 indicates Negative momentum. The RSI at 77.06 is Negative, neither overbought nor oversold. The STOCH value of 89.23 is Negative, 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	78 Outperform	$5.14B	11.38	40.72%	―	7.57%	1.75%
AEO	77 Outperform	$4.32B	21.98	12.36%	2.09%	-1.15%	-0.98%
BKE	72 Outperform	$2.92B	14.01	41.26%	6.82%	4.67%	3.46%
GES	72 Outperform	$874.06M	16.00	16.57%	6.26%	6.44%	-9.23%
VSCO	71 Outperform	$4.37B	26.85	31.50%	―	2.97%	9.85%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
GCO	48 Neutral	$260.00M	-128.50	-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.