Victoria's Secret (VSCO) AI Stock Analysis

• Market Cap: $1.45B
• Dividend Yield: N/A
• Average Volume (3M): 3.24M
• Price to Earnings (P/E): 9.1
• Beta (1Y): 1.72
• Revenue Growth: 1.45%
• EPS Growth: 59.09%
• Country: US
• Employees: 13,000
• Sector: Consumer Cyclical
• Sector Strength: 58
• Industry: Apparel - Retail
• EPS (TTM): 0.09
• Shares Outstanding: 79,852,500
• 10 Day Avg. Volume: 3,887,411
• 30 Day Avg. Volume: 3,242,240
• PEG Ratio: <0.01
• Price to Book (P/B): 3.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 43.69
• Enterprise Value/Market Cap: 4.36
• Enterprise Value/Revenue: 0.26
• Enterprise Value/Gross Profit: 2.78
• Enterprise Value/Ebitda: 2.89
• 1Y Price Target: $22.00
• Price Target Upside: 20.95% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 11

• Rating: 62 Neutral
• Price Target: $22.50 ▲(23.69%Upside)

Victoria's Secret's stock is moderately positioned, with strengths in valuation and strategic developments. Financial recovery and operational improvements are offset by stability challenges and external pressures.

Positive Factors

Brand Differentiation

Marketing is a key priority with the goal of better differentiating the VS and PINK brands and gaining new customers.

Digital and Inventory Management

VSCO's International and digital performed well, and inventories remain under control.

International Performance

VSCO's international revenue grew 9% year-over-year, with management expecting continued strength ahead.

Negative Factors

Intimates Category Challenges

Continued pressure in intimates as younger customers are interacting with the category differently, particularly bras.

Tariffs Impact on Margins

The full-year earnings guidance was lowered entirely due to tariffs and may not be fully de-risked.

Technology and Security Issues

Management is postponing its 1Q call due to a security incident that impacted the company's corporate systems, e-commerce website, and certain functions in Victoria’s Secret and PINK stores.

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 makes money through the sale of its products in both physical retail locations and online platforms. The company's primary revenue streams include sales from its extensive network of stores as well as its e-commerce operations. Additionally, Victoria's Secret benefits from its strong brand recognition and customer loyalty, which drive substantial traffic and sales. The company also engages in strategic partnerships and collaborations to expand its product offerings and market reach, further contributing to its revenue. Seasonal promotions, loyalty programs, and exclusive product lines are employed to enhance customer engagement and sales performance.

Victoria's Secret Financial Statement Overview

Summary

Victoria's Secret shows a moderate recovery with improved profitability and operational margins. However, challenges remain in revenue growth and financial stability, highlighted by high leverage and fluctuating cash flows.

Income Statement

Victoria's Secret has shown a moderate rebound in profitability since 2020, with gross profit margins stabilizing around 36-37% in recent years. However, net profit margins remain low, showing only a slight improvement from negative figures. Revenue has been fairly stable, with a slight decline over the past few years, indicative of challenges in achieving growth. The EBIT and EBITDA margins have improved post-2020, suggesting some operational efficiency gains.

Balance Sheet

The balance sheet shows some improvement in equity from 2022 to 2025, with stockholders' equity rising. However, the debt-to-equity ratio was high until 2025, reflecting significant leverage. With liabilities exceeding assets in 2025, the equity ratio appears concerning. While return on equity improved in recent years, it remains modest, highlighting a need for stronger financial stability.

Cash Flow

The cash flow statement indicates volatility, with free cash flow fluctuating significantly. Operating cash flow has been inconsistent, leading to a challenging environment for maintaining robust cash flow generation. The operating cash flow to net income ratio is not calculable for 2025 due to missing data, but prior years show a moderate ability to convert net income into cash.

Breakdown
Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
6.23B	6.18B	6.34B	6.78B	5.41B
	Gross Profit
2.28B	2.25B	2.26B	2.76B	1.57B
	EBIT
310.00M	246.00M	478.00M	870.00M	-101.00M
	EBITDA
565.00M	530.00M	751.00M	1.17B	226.00M
	Net Income Common Stockholders
165.00M	109.00M	348.00M	646.00M	-72.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
227.00M	270.00M	427.00M	490.00M	335.00M
	Total Assets
4.53B	4.60B	4.71B	4.34B	4.23B
	Total Debt
2.70B	2.70B	2.79B	2.64B	2.07B
	Net Debt
2.47B	2.43B	2.36B	2.15B	1.74B
	Total Liabilities
3.87B	4.16B	4.31B	4.09B	3.34B
	Stockholders Equity
640.00M	417.00M	383.00M	257.00M	891.00M
Cash Flow		Free Cash Flow
247.00M	133.00M	273.00M	682.00M	547.00M
	Operating Cash Flow
425.00M	389.00M	437.00M	851.00M	674.00M
	Investing Cash Flow
-153.00M	-254.00M	-500.00M	-169.00M	-123.00M
	Financing Cash Flow
-315.00M	-291.00M	3.00M	-527.00M	-465.00M

Victoria's Secret Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 18.19
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VSCO, the sentiment is Negative. The current price of 18.19 is below the 20-day moving average (MA) of 21.56, below the 50-day MA of 19.74, and below the 200-day MA of 28.17, indicating a bearish trend. The MACD of -0.11 indicates Positive momentum. The RSI at 36.60 is Neutral, neither overbought nor oversold. The STOCH value of 14.61 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for VSCO.

Victoria's Secret Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BKE	75 Outperform	$2.19B	11.01	44.55%	3.27%	-1.08%	-8.20%
GES	66 Neutral	$596.11M	14.29	2.61%	10.47%	9.02%	-93.19%
AEO	64 Neutral	$1.68B	9.93	12.19%	5.37%	-0.95%	-10.51%
Sector *	62 Neutral	$6.82B	11.05	2.80%	4.32%	2.67%	-24.92%
VSCO	62 Neutral	$1.45B	9.13	31.35%	―	1.45%	59.09%
CTRN	57 Neutral	$250.31M	―	-29.52%	―	1.85%	-337.77%
FL	56 Neutral	$2.29B	194.63	-12.85%	―	-2.62%	0.93%

Victoria's Secret Corporate Events

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.

The most recent analyst rating on (VSCO) stock is a Hold with a $18.00 price target. To see the full list of analyst forecasts on Victoria’s Secret stock, see the VSCO Stock Forecast page.

Victoria’s Secret Faces IT Security Incident Impact

On May 24, 2025, Victoria’s Secret & Co. detected a security incident involving its IT systems, prompting the temporary shutdown of corporate systems and the e-commerce website. While the incident did not affect the company’s financial results for the first quarter of fiscal 2025, it delayed the earnings release and call webcast. The company expects its financial metrics for the first quarter to meet or exceed the high-end of guidance ranges, but ongoing restoration efforts and potential expenses from the incident could impact future financial results.

The most recent analyst rating on (VSCO) stock is a Hold with a $18.00 price target. To see the full list of analyst forecasts on Victoria’s Secret stock, see the VSCO Stock Forecast page.

Victoria’s Secret Amends Credit Agreement for Flexibility

On May 21, 2025, Victoria’s Secret & Co. amended its Revolving Credit Agreement with JPMorgan Chase Bank and other lenders, extending the maturity date and adjusting terms to improve financial flexibility. The amendment includes a seasonal increase in inventory advance rates, reduced interest rates on borrowings, and changes to borrowing conditions, which could enhance the company’s operational efficiency and financial positioning.

The most recent analyst rating on (VSCO) stock is a Hold with a $18.00 price target. To see the full list of analyst forecasts on Victoria’s Secret stock, see the VSCO Stock Forecast page.

Victoria’s Secret Adopts Shareholder Rights Plan Amidst Market Dislocation

On May 19, 2025, Victoria’s Secret & Co. announced the adoption of a limited-duration shareholder rights plan in response to BBRC International Pte Limited’s substantial accumulation of the company’s stock. The plan, effective immediately and expiring in one year, aims to protect the long-term interests of all shareholders by preventing any person or group from gaining control without paying an appropriate premium. The plan was adopted amidst market dislocation in the retail sector and is not intended to deter fair offers but to ensure shareholders receive equal treatment in any takeover scenario.

The most recent analyst rating on (VSCO) stock is a Hold with a $18.00 price target. To see the full list of analyst forecasts on Victoria’s Secret stock, see the VSCO Stock Forecast page.