(VSCO) Victoria's Secret - Overview
Sector: Consumer Cyclical | Industry: Apparel Retail | Exchange: NYSE (USA) | Market Cap: 4.166m USD | Total Return: 183.9% in 12m
Avg Turnover: 96.7M
EPS Trend: -17.2%
Qual. Beats: 3
Rev. Trend: 67.8%
Qual. Beats: 6
Warnings
Extended 1w
Tailwinds
Rs Leader, Idiosyncratic Leader, Tailwind, Pullback 52w
Victorias Secret & Co. (VSCO) is a specialty retailer focused on womens intimate apparel, beauty products, and casual wear. The company operates an omni-channel model, distributing products through its physical retail footprint and digital platforms including VictoriasSecret.com and PINK.com. Its brand portfolio includes Victoria’s Secret, PINK, and the digitally-native lingerie brand Adore Me.
As a player in the Apparel Retail sub-industry, the company faces high cyclicality and intense competition from direct-to-consumer startups. The business model relies heavily on brand equity and seasonal product cycles to drive consumer traffic. To better understand the companys competitive positioning, consider reviewing the detailed valuation metrics available on ValueRay.
The company maintains a global presence through a mix of company-owned stores and third-party arrangements, including franchises and wholesale partnerships. Headquartered in Ohio, VSCO serves as an independent entity following its 2021 spin-off from its former parent company.
- Market share erosion in intimate apparel impacts long-term revenue growth
- Success of brand repositioning efforts determines customer acquisition and retention
- Digital channel integration and Adore Me synergy drive margin expansion
- Consumer discretionary spending fluctuations influence demand for premium beauty products
- International franchise and wholesale expansion diversifies global revenue streams
| Net Income: 160.9m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.06 > 0.02 and ΔFCF/TA 0.77 > 1.0 |
| NWC/Revenue: 5.74% < 20% (prev 1.06%; Δ 4.68% < -1%) |
| CFO/TA 0.10 > 3% & CFO 499.0m > Net Income 160.9m |
| Net Debt (4.20b) to EBITDA (509.0m): 8.25 < 3 |
| Current Ratio: 1.25 > 1.5 & < 3 |
| Outstanding Shares: last quarter (85.8m) vs 12m ago 3.25% < -2% |
| Gross Margin: 36.38% > 18% (prev 0.37%; Δ 3.60k% > 0.5%) |
| Asset Turnover: 137.3% > 50% (prev 137.4%; Δ -0.12% > 0%) |
| Interest Coverage Ratio: 3.89 > 6 (EBITDA TTM 509.0m / Interest Expense TTM 69.7m) |
| A: 0.08 (Total Current Assets 1.88b - Total Current Liabilities 1.51b) / Total Assets 5.01b |
| B: 0.10 (Retained Earnings 504.0m / Total Assets 5.01b) |
| C: 0.06 (EBIT TTM 271.0m / Avg Total Assets 4.77b) |
| D: 0.12 (Book Value of Equity 511.0m / Total Liabilities 4.10b) |
| Altman-Z'' = 1.33 = BB |
| DSRI: 1.11 (Receivables 186.0m/159.0m, Revenue 6.55b/6.23b) |
| GMI: 1.01 (GM 36.38% / 36.65%) |
| AQI: 0.83 (AQ_t 0.15 / AQ_t-1 0.18) |
| SGI: 1.05 (Revenue 6.55b / 6.23b) |
| TATA: -0.07 (NI 160.9m - CFO 499.0m) / TA 5.01b) |
| Beneish M = -3.06 (Cap -4..+1) = AA |
As of May 29, 2026, the stock is trading at USD 57.18 with a total of 2,553,087 shares traded.
Over the past week, the price has changed by +24.92%,
over one month by +15.21%,
over three months by -4.94% and
over the past year by +183.94%.
Victoria's Secret has received a consensus analysts rating of 3.00. Therefore, it is recommended to hold VSCO.
- StrongBuy: 1
- Buy: 2
- Hold: 5
- Sell: 2
- StrongSell: 1
| Analysts Target Price | 65.8 | 15% |
P/E Trailing = 27.1762
P/E Forward = 17.0068
P/S = 0.6357
P/B = 4.8667
Revenue TTM = 6.55b USD
EBIT TTM = 271.0m USD
EBITDA TTM = 509.0m USD
Long Term Debt = 971.0m USD (from longTermDebt, last quarter)
Short Term Debt = 299.0m USD (from shortTermDebt, last quarter)
Debt = 4.72b USD (from shortLongTermDebtTotal, last quarter) + Leases 1.87b
Net Debt = 4.20b USD (calculated: Debt 4.72b - CCE 518.0m)
Enterprise Value = 8.36b USD (4.17b + Debt 4.72b - CCE 518.0m)
Interest Coverage Ratio = 3.89 (Ebit TTM 271.0m / Interest Expense TTM 69.7m)
EV/FCF = 26.81x (Enterprise Value 8.36b / FCF TTM 312.0m)
FCF Yield = 3.73% (FCF TTM 312.0m / Enterprise Value 8.36b)
FCF Margin = 4.76% (FCF TTM 312.0m / Revenue TTM 6.55b)
Net Margin = 2.45% (Net Income TTM 160.9m / Revenue TTM 6.55b)
Gross Margin = 36.38% ((Revenue TTM 6.55b - Cost of Revenue TTM 4.17b) / Revenue TTM)
Gross Margin QoQ = 37.67% (prev 36.41%)
Tobins Q-Ratio = 1.67 (Enterprise Value 8.36b / Total Assets 5.01b)
Interest Expense / Debt = 1.48% (Interest Expense 69.7m / Debt 4.72b)
Taxrate = 7.42% (16.0m / 215.4m)
NOPAT = 250.9m (EBIT 271.0m * (1 - 7.42%))
Current Ratio = 1.25 (Total Current Assets 1.88b / Total Current Liabilities 1.51b)
Debt / Equity = 5.51 (Debt 4.72b / totalStockholderEquity, last quarter 856.0m)
Debt / EBITDA = 8.25 (Net Debt 4.20b / EBITDA 509.0m)
Debt / FCF = 13.46 (Net Debt 4.20b / FCF TTM 312.0m)
Total Stockholder Equity = 708.5m (last 4 quarters mean from totalStockholderEquity)
RoA = 3.37% (Net Income 160.9m / Total Assets 5.01b)
RoE = 22.70% (Net Income TTM 160.9m / Total Stockholder Equity 708.5m)
RoCE = 16.13% (EBIT 271.0m / Capital Employed (Equity 708.5m + L.T.Debt 971.0m))
RoIC = 7.02% (NOPAT 250.9m / Invested Capital 3.57b)
WACC = 7.56% (E(4.17b)/V(8.88b) * Re(14.58%) + D(4.72b)/V(8.88b) * Rd(1.48%) * (1-Tc(0.07)))
Discount Rate = 14.58% (= CAPM, Blume Beta Adj.) -> capped to 13.17%
Shares (quarterly) Correlation: 67.42 | Cagr: 4.95%
[DCF] Terminal Value 77.97% ; FCFF base≈286.0m ; Y1≈327.9m ; Y5≈482.5m
[DCF] Fair Price = 38.55 (EV 7.26b - Net Debt 4.20b = Equity 3.06b / Shares 79.4m; r=8.35% [WACC [floored]]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: -17.16 | EPS CAGR: -3.65% | SUE: 1.96 | # QB: 3
Revenue Correlation: 67.78 | Revenue CAGR: 1.49% | SUE: 1.36 | # QB: 6
EPS current Quarter (2026-07-31): EPS=0.41 | Chg30d=+0.27% | Revisions=-14% | Analysts=9
EPS current Year (2027-01-31): EPS=3.48 | Chg30d=+0.48% | Revisions=+43% | GrowthEPS=+16.1% | GrowthRev=+6.3%
EPS next Year (2028-01-31): EPS=4.17 | Chg30d=+2.63% | Revisions=+14% | GrowthEPS=+19.6% | GrowthRev=+4.2%
[Analyst] Revisions Ratio: +43%