A Business at a Glance
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Victoria's Secret & Co.
VSCO
$6.8B
Mkt Cap
Victoria's Secret & Co. (VSCO) has a current P/E ratio of 37.8, compared to its historical median P/E of 14.0. The stock is currently considered Expensive based on its historical valuation range.
Victoria's Secret & Co. (VSCO) has a 5-year average return on invested capital (ROIC) of 37.2%. This indicates strong capital allocation and a potential competitive advantage.
Victoria's Secret & Co. (VSCO) has a market capitalization of $4.9B. It is classified as a mid-cap stock.
Victoria's Secret & Co. (VSCO) does not currently pay a regular dividend.
Based on historical P/E analysis, Victoria's Secret & Co. (VSCO) appears expensive. The current P/E of 37.8 is 170% above its historical median of 14.0. The estimated fair value CAGR (P/E method) is -31.7%.
Victoria's Secret & Co. (VSCO) operates in the Retail-Women'S Clothing Stores industry, within the Consumer Cyclical sector.
Victoria's Secret & Co. (VSCO) reported annual revenue of $6.6 billion in its most recent fiscal year, based on SEC EDGAR filings.
ITEM 1. BUSINESS. Victoria's Secret & Co. (together with its subsidiaries unless the context otherwise requires, “we”, “us”, “our” or the “Company”) is a specialty retailer of women's intimate and other apparel and beauty products marketed under the Victoria's Secret, PINK and Adore Me brand names. We have more than 880 stores in the United States (“U.S.”), Canada and China, as well as our own websites, www.VictoriasSecret.com, www.PINK.com, www.AdoreMe.com and www.DailyLook.com, and other digital channels worldwide. Additionally, we have more than 500 stores in nearly 70 countries operating under franchise, license and wholesale arrangements. The Company also includes the merchandise sourcing and production function serving us and our international partners. We operate as a single segment designed to seamlessly serve customers worldwide through stores and digital channels. On December 30, 2022, we completed our acquisition of AdoreMe, Inc.
| Metric | TTM | FY2026 | FY2025 | FY2024 | FY2023 | FY2022 |
|---|---|---|---|---|---|---|
| Revenue | 6.3B | 6.6B | 6.2B | 6.2B | 6.3B | 6.8B |
| Net Income | 151M | 161M | 165M | 109M | 348M | 646M |
| EPS | $1.91 | $1.93 | $2.05 | $1.39 | $4.14 | $7.18 |
| Free Cash Flow | 242M | 312M | 247M | 133M | 273M | 682M |
| ROIC | 16.0% | 18.2% | 17.8% | 15.5% | 39.2% | 95.1% |
| Gross Margin | 36.3% | 36.4% | 36.7% | 36.3% | 35.6% | 40.7% |
| Debt/Equity | 1.55 | 1.14 | 1.53 | 2.70 | 3.33 | 3.82 |
| Dividends/Share | $0.00 | $0.00 | - | - | - | - |
| Operating Income | 282M | 271M | 310M | 246M | 478M | 870M |
| Operating Margin | 4.5% | 4.1% | 5.0% | 4.0% | 7.5% | 12.8% |
| ROE | 22.2% | 21.5% | 31.2% | 27.3% | 108.8% | 112.5% |
| Shares Outstanding | 80M | 83M | 80M | 78M | 84M | 90M |
| Metric | ||||||||
|---|---|---|---|---|---|---|---|---|
| Income Statement | ||||||||
| Revenue | 7.5B | 5.4B | 6.8B | 6.3B | 6.2B | 6.2B | 6.6B | 6.3B |
| Gross Margin | 27.5% | 29.0% | 40.7% | 35.6% | 36.3% | 36.7% | 36.4% | 36.3% |
| R&D | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| SG&A | 2.2B | 1.7B | 1.9B | 1.8B | 2.0B | 2.0B | 2.1B | 2.0B |
| EBIT | -892M | -101M | 870M | 478M | 246M | 310M | 271M | 282M |
| Op. Margin | -11.9% | -1.9% | 12.8% | 7.5% | 4.0% | 5.0% | 4.1% | 4.5% |
| Net Income | -897M | -72M | 646M | 348M | 109M | 165M | 161M | 151M |
| Net Margin | -11.9% | -1.3% | 9.5% | 5.5% | 1.8% | 2.6% | 2.5% | 2.4% |
| Non-Recurring | 720M | 0 | 0 | 0 | 0 | 7.0M | 120M | 120M |
| Returns on Capital | ||||||||
| ROIC | N/A | -6.3% | 95.1% | 39.2% | 15.5% | 17.8% | 18.2% | 16.0% |
| ROE | N/A | -6.5% | 112.5% | 108.8% | 27.3% | 31.2% | 21.5% | 22.2% |
| ROA | N/A | -3.4% | 15.1% | 7.7% | 2.3% | 3.6% | 3.4% | 3.2% |
| Cash Flow | ||||||||
| Op. Cash Flow | 315M | 674M | 851M | 437M | 389M | 425M | 499M | 432M |
| Free Cash Flow | 90M | 547M | 682M | 273M | 133M | 247M | 312M | 242M |
| Owner Earnings | -134M | 323M | 515M | 115M | 49M | 107M | 206M | 121M |
| CapEx | 225M | 127M | 169M | 164M | 256M | 178M | 187M | 190M |
| Maint. CapEx | 411M | 326M | 303M | 274M | 284M | 258M | 238M | 254M |
| Growth CapEx | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| D&A | 411M | 326M | 303M | 274M | 284M | 258M | 238M | 254M |
| CapEx/OCF | N/A | N/A | 19.9% | 37.5% | 65.8% | 41.9% | N/A | 44.0% |
| Capital Allocation | ||||||||
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Dividend Yield | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Share Buybacks | 0 | 0 | 250M | 250M | 125M | 0 | 0 | 0 |
| Buyback Yield | 0.0% | N/A | 5.0% | 7.6% | 6.1% | N/A | 0.0% | 0.0% |
| Stock-Based Comp | 38M | 25M | 33M | 48M | 56M | 60M | 55M | 57M |
| Debt Repayment | 0 | 0 | 1.0M | 4.0M | 4.0M | 4.0M | 4.0M | 4.0M |
| Balance Sheet | ||||||||
| Net Debt | N/A | -238M | 492M | 848M | 854M | 750M | 457M | 680M |
| Cash & Equiv. | 245M | 335M | 490M | 427M | 270M | 227M | 518M | 376M |
| Long-Term Debt | N/A | 97M | 978M | 1.3B | 1.1B | 973M | 971M | 1.0B |
| Debt/Equity | N/A | 0.11 | 3.82 | 3.33 | 2.70 | 1.53 | 1.14 | 1.55 |
| Interest Coverage | -111.5 | -16.8 | 32.2 | 8.0 | 2.5 | 3.6 | 3.9 | 3.9 |
| Equity | N/A | 891M | 257M | 383M | 417M | 640M | 856M | 680M |
| Total Assets | N/A | 4.2B | 4.3B | 4.7B | 4.6B | 4.5B | 5.0B | 4.8B |
| Total Liabilities | N/A | 3.3B | 4.1B | 4.3B | 4.2B | 3.9B | 4.1B | 4.0B |
| Intangibles | N/A | N/A | 0 | 180M | 155M | 130M | 0 | 85M |
| Retained Earnings | N/A | 0 | 126M | 186M | 178M | 343M | 504M | 357M |
| Working Capital | N/A | -317M | -7.0M | 158M | -81M | 66M | 376M | 194M |
| Current Assets | N/A | 1.2B | 1.7B | 1.7B | 1.5B | 1.4B | 1.9B | 1.5B |
| Current Liabilities | N/A | 1.6B | 1.7B | 1.6B | 1.6B | 1.4B | 1.5B | 1.3B |
| Per Share Data | ||||||||
| EPS | -10.16 | -0.82 | 7.18 | 4.14 | 1.39 | 2.05 | 1.93 | 1.91 |
| Owner EPS | -1.52 | 3.68 | 5.72 | 1.37 | 0.62 | 1.33 | 2.47 | 1.51 |
| Book Value | N/A | 10.15 | 2.86 | 4.56 | 5.32 | 7.95 | 10.26 | 8.48 |
| Cash Flow/Share | 3.57 | 7.68 | 9.46 | 5.20 | 4.96 | 5.28 | 5.98 | 5.05 |
| Dividends/Share | N/A | N/A | N/A | N/A | N/A | N/A | 0.00 | 0.00 |
| Shares Out. | 88.3M | 87.8M | 90.0M | 84.1M | 78.4M | 80.5M | 83.4M | 80.2M |
| Valuation | ||||||||
| P/E Ratio | N/A | N/A | 7.8 | 9.4 | 18.7 | 18.5 | N/A | 32.0 |
| P/FCF | N/A | N/A | 7.3 | 12.0 | 15.3 | 12.4 | N/A | 20.3 |
| EV/EBIT | N/A | N/A | 5.8 | 7.8 | 10.7 | 11.5 | N/A | 19.8 |
| Price/Book | N/A | N/A | 19.5 | 8.6 | 4.9 | 4.8 | N/A | 7.2 |
| Price/Sales | N/A | N/A | 0.7 | 0.5 | 0.3 | 0.3 | N/A | 0.8 |
| FCF Yield | N/A | N/A | 13.6% | 8.3% | 6.5% | 8.1% | N/A | 4.9% |
| Market Cap | 0 | N/A | 5.0B | 3.3B | 2.0B | 3.1B | 0 | 4.9B |
| Avg. Price | 0.00 | N/A | 55.81 | 41.41 | 24.64 | 25.98 | 0.00 | 61.18 |
| Year-End Price | 0.00 | N/A | 55.71 | 39.10 | 25.96 | 37.90 | 0.00 | 61.18 |
Victoria's Secret & Co. passes 3 of 9 quality checks, indicating weak fundamentals.
Victoria's Secret & Co. trades at 37.8x trailing earnings, compared to its 15-year median P/E of 14.0x, suggesting it is currently Expensive relative to its historical range. On a free-cash-flow basis, the stock trades at 26.8x vs a median of 12.2x. The company's 5-year average ROIC is 37.2% with a gross margin of 37.1%. At current prices, the estimated annualized return to fair value is -25.1%.
Victoria's Secret & Co. (VSCO) has a net profit margin of 2.5%. This is a modest margin.
Victoria's Secret & Co. (VSCO) generated $312 million in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
Victoria's Secret & Co. (VSCO) has a debt-to-equity ratio of 1.14. This indicates moderate leverage.
Victoria's Secret & Co. (VSCO) reported earnings per share (EPS) of $1.93 in its most recent fiscal year.
Victoria's Secret & Co. (VSCO) has a return on equity (ROE) of 21.5%. This indicates the company generates strong returns for shareholders.
Victoria's Secret & Co. (VSCO) has a 5-year average gross margin of 37.1%. This indicates decent pricing power.
The Ledger Terminal provides 7 years of financial data for Victoria's Secret & Co. (VSCO), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
Victoria's Secret & Co. (VSCO) has a book value per share of $10.26, based on its most recent annual SEC filing.