Victoria's Secret & Company (VSXY)
NYSE:VSXY
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Victoria's Secret
(NYSE:VSXY)
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Rating:66Neutral
Price Target:
$96.00
▲(75.44% Upside)
Action:Downgraded
Date:06/16/26
The score is driven by a strong, guidance-raising earnings call and bullish price momentum, partially offset by leveraged balance-sheet risk and a relatively high P/E with no dividend support. Improving cash flow and returning revenue growth help, but thin current margins and debt sensitivity keep the overall rating in the middle range.
Positive Factors
Revenue recovery and consistent comps
Sustained top-line recovery and consecutive positive comps signal durable brand demand and execution across channels. Broad-based strength across Victoria's Secret, PINK and Beauty and rising customer file support structural revenue scalability rather than a transient bounce.
Negative Factors
Elevated leverage and debt burden
A debt-heavy capital structure increases sensitivity to demand swings, interest costs and margin compression. Limited equity relative to debt constrains strategic flexibility, raises refinancing and covenant risk in adverse cycles, and can amplify downside volatility in a cyclical retail environment.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue recovery and consistent comps
Sustained top-line recovery and consecutive positive comps signal durable brand demand and execution across channels. Broad-based strength across Victoria's Secret, PINK and Beauty and rising customer file support structural revenue scalability rather than a transient bounce.
Read all positive factors
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 (VSXY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$7.04B
Dividend YieldN/A
Average Volume (3M)2.84M
Price to Earnings (P/E)36.3
Beta (1Y)1.93
Revenue Growth8.65%
EPS Growth23.86%
CountryUS
Employees33,000
SectorConsumer Cyclical
Sector Strength84
IndustryApparel - Footwear & Accessories
Share Statistics
EPS (TTM)1.86
Shares Outstanding79,491,720
10 Day Avg. Volume2,074,706
30 Day Avg. Volume2,837,461
Financial Highlights & Ratios
PEG Ratio-11.17
Price to Book (P/B)5.09
Price to Sales (P/S)0.67
P/FCF Ratio13.98
Enterprise Value/Market Cap1.22
Enterprise Value/Revenue1.31
Enterprise Value/Gross Profit3.60
Enterprise Value/Ebitda16.62
Forecast
1Y Price Target
$88.11Price Target Upside61.02% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering9
EPS Forecast (FY)4.6
Revenue Forecast (FY)$7.13B
Victoria's Secret Business Overview & Revenue Model
Company Description
Victoria's Secret & Co. operates as a retail enterprise, primarily dealing in lingerie, apparel, and beauty merchandise. Their extensive product range includes intimate wear such as bras and panties, along with sleepwear, general clothing, athleti...
How the Company Makes Money
The company makes money primarily by selling branded merchandise directly to consumers (DTC) through two main channels: (1) physical retail stores and (2) online/e-commerce. Revenue is generated when customers purchase products across its core cat...
Victoria's Secret Earnings Call Summary
Earnings Call Date:Jun 02, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Sep 02, 2026
Earnings Call Sentiment Positive
The call communicated broad-based, sustained momentum across top-line growth, margin expansion and customer engagement, with materially raised full-year guidance and strong profitability improvements. Key operational challenges center on tariff uncertainty, inventory timing due to freight shifts, modest near-term SG&A pressure (including proxy-related expense) and some strategic timing trade-offs (e.g., VSX). Overall the positive financial performance, raised guidance, and accelerating customer metrics outweigh the risks highlighted.Positive Updates
Strong Revenue Growth
Net sales of $1.56 billion, up $207 million or 15% year-over-year; total comp sales increased 13%, driving total sales growth of 15% and marking the fourth consecutive quarter of positive comps.
Negative Updates
Tariff Uncertainty and Headwinds
Management assumes Section 122 tariffs at 10% through July and a return to 20% in the back half of the year; gross tariffs remain a multi-quarter headwind (~$75 million on the year) and the guidance embeds $65 million of tariff favorability vs prior guidance but still assumes significant tariff exposure.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Revenue Growth
Net sales of $1.56 billion, up $207 million or 15% year-over-year; total comp sales increased 13%, driving total sales growth of 15% and marking the fourth consecutive quarter of positive comps.
Read all positive updates
Company Guidance
Management raised FY26 targets: net sales $7.03–$7.13B (up 7–9% vs FY25 $6.553B; prior guide $6.85–$6.95B), adjusted operating income $550–$580M (vs $403M in FY25; the $120M raise vs prior guide was ~$55M business/$65M tariff), implying ~170–200 bps of operating margin expansion, and adjusted EPS $4.35–$4.60 on ~84M diluted shares; capex is forecast at $220–$240M (~3% of sales) and store count is expected flat to slightly up with 45% of the fleet in Store of the Future (30% NA, 55% intl). For Q2 they forecast sales $1.59–$1.615B (≈9–11% YoY vs Q2'25 $1.459B), operating income $90–$100M (vs $55M), gross margin ~38.5% (~290 bps YoY expansion), SG&A ~32.5% (includes ~$7M proxy expenses), EPS $0.65–$0.75 (vs $0.33), and inventories ending Q2 up high-single-digits. Tariff assumptions: Section 122 tariffs at 10% through July then assumed to revert to ~20% in the back half; outlook excludes any IEEPA refund recovery—management noted gross tariffs remain roughly a $75M headwind on the year but the revised guidance reflects materially more favorable tariff impact versus prior assumptions.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 | 2.38B | 2.28B | 2.24B | 2.26B | 2.76B |
| EBITDA | 516.00M | 565.00M | 530.00M | 751.00M | 1.17B |
| Net Income | 161.00M | 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
54.72
Price Trends
61.10
Positive
56.99
Positive
49.45
Positive
Market Momentum
6.98
Negative
74.62
Negative
83.44
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VSXY, the sentiment is Positive. The current price of 54.72 is below the 20-day moving average (MA) of 76.46, below the 50-day MA of 61.10, and above the 200-day MA of 49.45, indicating a bullish trend. The MACD of 6.98 indicates Negative momentum. The RSI at 74.62 is Negative, neither overbought nor oversold. The STOCH value of 83.44 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for VSXY.
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 |
|---|---|---|---|---|---|---|---|
72 Outperform | $4.07B | 8.60 | 36.89% | ― | 5.13% | 0.95% | |
68 Neutral | $2.23B | 9.83 | 47.36% | 6.82% | 7.10% | 12.26% | |
66 Neutral | $7.04B | 36.27 | 29.74% | ― | 8.65% | 23.86% | |
64 Neutral | $401.85M | 18.84 | 3.68% | ― | 4.60% | ― | |
63 Neutral | $3.00B | 10.84 | 17.24% | 2.09% | 6.22% | 65.05% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% |
* Consumer Cyclical Sector Average
VSXY
Victoria's Secret
88.50
69.18
358.07%
ANF
Abercrombie Fitch
91.51
8.79
10.63%
AEO
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17.88
8.31
86.87%
BKE
Buckle
43.24
1.29
3.08%
GCO
Genesco
36.18
15.43
74.36%
Victoria's Secret Corporate Events
Executive/Board ChangesShareholder Meetings
Victoria’s Secret Shareholders Approve Directors and Governance Measures
Positive
Jun 15, 2026
On June 11, 2026, Victoria’s Secret Co. held its annual meeting of stockholders via remote communication, where shareholders elected nine directors to serve until the 2027 annual meeting. The slate of directors, including Hillary Super, Don...
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.