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Victoria's Secret
(NYSE:VSXY)
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Rating:64Neutral
Price Target:
$91.00
▲(4.17% Upside)
Action:Reiterated
Date:09/15/26
Overall score reflects improving fundamentals and a strong, guidance-raising earnings call as the primary positives, offset by meaningful balance-sheet leverage risk and weak technical momentum (trading below key moving averages with negative MACD). Valuation is supportive but not a major catalyst at a mid-teens P/E and no stated dividend yield.
Positive Factors
Profitability rebound
The sharp improvement in revenue, earnings, gross margin, and operating margin indicates that the business is regaining operating traction. If sustained, better profitability can fund product investment, strengthen cash generation, and provide greater resilience through the next several quarters.
Negative Factors
Elevated leverage
Debt remains high relative to the equity base, so a weaker demand environment or profitability setback could place greater pressure on cash allocation. Elevated leverage may limit flexibility for investment, increase financing sensitivity, and make the recovery more dependent on sustained operating performance.
Read all positive and negative factors
Positive Factors
Negative Factors
Profitability rebound
The sharp improvement in revenue, earnings, gross margin, and operating margin indicates that the business is regaining operating traction. If sustained, better profitability can fund product investment, strengthen cash generation, and provide greater resilience through the next several quarters.
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
$6.79B
Dividend YieldN/A
Average Volume (3M)1.93M
Price to Earnings (P/E)19.4
Beta (1Y)1.94
Revenue Growth10.35%
EPS Growth146.52%
CountryUS
Employees30,000
SectorConsumer Cyclical
Sector Strength84
IndustryApparel - Retail
Share Statistics
EPS (TTM)4.42
Shares Outstanding79,764,040
10 Day Avg. Volume1,452,915
30 Day Avg. Volume1,930,210
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 Cap1.46
Enterprise Value/Revenue1.43
Enterprise Value/Gross Profit3.61
Enterprise Value/Ebitda14.86
Forecast
1Y Price Target
$94.40Price Target Upside8.06% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering10
EPS Forecast (FY)4.72
Revenue Forecast (FY)$7.18B
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—especially lingerie and intimates—directly to consumers through (1) physical retail stores and (2) digital channels (e-commerce). Revenue is generated when customers purchase product...
Victoria's Secret Earnings Call Summary
Earnings Call Date:Sep 03, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Dec 02, 2026
Earnings Call Sentiment Positive
The call was strongly positive, with broad-based sales and customer growth, significant regular-price and margin improvement, successful innovation across bras and beauty, strong liquidity, and raised fiscal 2026 guidance. The main challenges were June's inventory-related sales pressure, expected moderation in international growth, tariff and transportation costs, higher Q3 SG&A, and a Q3 EPS outlook that still ranges from a loss to break-even. Highlights significantly outweighed the lowlights.Positive Updates
Strong Q2 Sales and Profit Outperformance
Net sales increased 10% year over year to $1.611 billion, near the high end of guidance. Q2 comp sales increased 9% and 13% on a 2-year basis. Adjusted operating income was $124 million, compared with $55 million last year, and exceeded the guidance range of $90 million to $100 million. Adjusted net income per diluted share nearly tripled to $0.95 from $0.33 and exceeded the guidance range of $0.65 to $0.75.
Negative Updates
June Top-Line Pressure from Lower Sale Inventory
Initial demand and sell-through during the semiannual sale exceeded expectations, but entering the period with less sale inventory pressured the June top line. June sales increased mid single digits, compared with double-digit growth in May and July.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Q2 Sales and Profit Outperformance
Net sales increased 10% year over year to $1.611 billion, near the high end of guidance. Q2 comp sales increased 9% and 13% on a 2-year basis. Adjusted operating income was $124 million, compared with $55 million last year, and exceeded the guidance range of $90 million to $100 million. Adjusted net income per diluted share nearly tripled to $0.95 from $0.33 and exceeded the guidance range of $0.65 to $0.75.
Read all positive updates
Company Guidance
For fiscal year 26, Victoria’s Secret expects net sales to be in the range of $7.1 billion to $7.18 billion, up from the prior range of $7.03 billion to $7.13 billion and representing year over year growth of 8% to 10% compared to prior guidance of 7% to 9%; adjusted operating income is expected in the range of $560 million to $590 million, adjusted net income per diluted share in the range of $4.45 to $4.70, weighted average diluted shares outstanding of approximately 85 million, capital expenditures in the range of $220 million to $240 million or approximately 3% of sales, and international net sales up approximately 20%, while Q3 net sales are forecast in the range of $1.57 billion to $1.6 billion, with top line growth of approximately 7% to 9% and sales up 16% to 18% on a 2 year basis, operating income in the range of $10 million to $20 million, gross margin rate about 38% or approximately 150 basis points of expansion, SG&A rate approximately 37.5% or approximately 100 basis points higher, non operating expense approximately $13 million, income taxes insignificant, and net income per diluted share in the range of a loss of $0.09 to income of $0.01; Q3 AUR is expected up low single digits and units up mid to high single digit, inventory is expected up high single digits, Q3 tariff rates are assumed at approximately 10-12.5% and Q4 at an approximate 20% tariff rate, marketing is in the low 7% of sales with an opportunity over the next couple of years to drive that up to a high single digit and currently just over 7% annually up to high single digits, and store counts at the end of 2026 are expected to be flat to slightly up compared to last year, with 45% of the global fleet in the store of the future design, including 30% in North America and 55% internationally.Victoria's Secret Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
48
Neutral
Cash Flow
76
Positive
| Breakdown | TTM | Jan 2026 | Jan 2025 | Jan 2024 | Jan 2023 | Jan 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 6.91B | 6.55B | 6.23B | 6.18B | 6.34B | 6.79B |
| Gross Profit | 2.74B | 2.38B | 2.28B | 2.24B | 2.26B | 2.76B |
| EBITDA | 665.20M | 516.00M | 565.00M | 530.00M | 751.00M | 1.17B |
| Net Income | 377.74M | 161.00M | 165.00M | 109.00M | 348.00M | 646.00M |
Balance Sheet | ||||||
| Total Assets | 5.16B | 5.01B | 4.53B | 4.60B | 4.71B | 4.34B |
| Cash, Cash Equivalents and Short-Term Investments | 522.00M | 518.00M | 227.00M | 270.00M | 427.00M | 490.00M |
| Total Debt | 2.90B | 2.85B | 2.70B | 2.70B | 2.79B | 2.64B |
| Total Liabilities | 4.10B | 4.10B | 3.87B | 4.16B | 4.31B | 4.09B |
| Stockholders Equity | 990.00M | 856.00M | 640.00M | 417.00M | 383.00M | 257.00M |
Cash Flow | ||||||
| Free Cash Flow | 554.00M | 312.00M | 247.00M | 133.00M | 273.00M | 682.00M |
| Operating Cash Flow | 758.00M | 499.00M | 425.00M | 389.00M | 437.00M | 851.00M |
| Investing Cash Flow | -201.00M | -184.00M | -153.00M | -254.00M | -555.00M | -169.00M |
| Financing Cash Flow | -227.00M | -24.00M | -315.00M | -291.00M | 58.00M | -527.00M |
Victoria's Secret Technical Analysis
Positive
87.36
Price Trends
85.41
Positive
79.83
Positive
66.93
Positive
Market Momentum
1.55
Negative
52.53
Neutral
50.44
Neutral
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 87.36 is above the 20-day moving average (MA) of 82.38, above the 50-day MA of 85.41, and above the 200-day MA of 66.93, indicating a bullish trend. The MACD of 1.55 indicates Negative momentum. The RSI at 52.53 is Neutral, neither overbought nor oversold. The STOCH value of 50.44 is Neutral, 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 84 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 |
|---|---|---|---|---|---|---|---|
81 Outperform | $6.00B | 11.75 | 39.59% | 6.86% | 4.73% | 8.69% | |
79 Outperform | $6.87B | 12.27 | 20.72% | ― | 11.01% | 24.97% | |
69 Neutral | $8.36B | 6.90 | 33.13% | 2.92% | 1.05% | 44.82% | |
65 Neutral | $3.00B | 8.83 | 20.04% | 2.83% | 8.21% | 89.24% | |
64 Neutral | $6.79B | 19.41 | 45.94% | ― | 10.35% | 146.52% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
49 Neutral | $248.30M | -27.99 | 4.27% | ― | -11.16% | -384.28% |
* Consumer Cyclical Sector Average
VSXY
Victoria's Secret
85.79
55.57
183.88%
ANF
Abercrombie Fitch
139.44
63.29
83.11%
AEO
American Eagle
17.66
2.51
16.54%
GAP
Gap Inc
23.61
3.53
17.57%
URBN
Urban Outfitters
79.75
7.97
11.10%
CURV
Torrid Holdings
2.53
0.95
60.13%
Victoria's Secret Corporate Events
Business Operations and StrategyFinancial Disclosures
Victoria’s Secret boosts outlook after strong second quarter
Positive
Sep 3, 2026
On September 3, 2026, Victoria’s Secret Co. reported that second-quarter 2026 net sales rose 10% year-on-year to $1.611 billion, with comparable sales up 9%, and operating income jumping to $257 million from $41 million a year earlier. Excl...
Business Operations and StrategyExecutive/Board Changes
Victoria’s Secret adds tech-focused independent board director
Positive
Aug 20, 2026
On August 18, 2026, Victoria’s Secret Co.’s board voted to expand from nine to ten directors and appointed technology veteran Gerri Martin-Flickinger as an independent director, effective September 14, 2026. She will also join the Aud...
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.