(VSCO) Victoria's Secret - NYSE
Sector: Consumer Cyclical | Industry: Apparel Retail | Exchange: NYSE (USA) | Market Cap: 4.313m USD | Total Return: 275.1% in 12m
Avg Turnover: 151M
EPS Trend: 37.2%
Qual. Beats: 0
Rev. Trend: 82.8%
Qual. Beats: 7
Warnings
No concerns identified
Tailwinds
Rs Leader, Idiosyncratic Leader, Tailwind
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: 210.6m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.07 > 0.02 and ΔFCF/TA 2.02 > 1.0 |
| NWC/Revenue: 5.03% < 20% (prev 3.20%; Δ 1.83% < -1%) |
| CFO/TA 0.11 > 3% & CFO 512.0m > Net Income 210.6m |
| Net Debt (4.51b) to EBITDA (571.1m): 7.91 < 3 |
| Current Ratio: 1.26 > 1.5 & < 3 |
| Outstanding Shares: last quarter (84.8m) vs 12m ago 7.41% < -2% |
| Gross Margin: 36.93% > 18% (prev 36.25%; Δ 0.68% > 0.5%) |
| Asset Turnover: 144.6% > 50% (prev 135.9%; Δ 8.73% > 0%) |
| Interest Coverage Ratio: 4.93 > 6 (EBIT TTM 333.1m / Interest Expense TTM 67.5m) |
| A: 0.07 (Total Current Assets 1.63b - Total Current Liabilities 1.29b) / Total Assets 4.77b |
| B: 0.10 (Retained Earnings 461.0m / Total Assets 4.77b) |
| C: 0.07 (EBIT TTM 333.1m / Avg Total Assets 4.67b) |
| D: 0.20 (Book Value of Equity 790.0m / Total Liabilities 3.92b) |
| Altman-Z'' = 1.47 = BB |
| DSRI: 1.11 (Receivables 185.0m/153.0m, Revenue 6.76b/6.22b) |
| GMI: 0.98 (GM 36.25% / 36.93%) |
| AQI: 0.88 (AQ_t 0.16 / AQ_t-1 0.18) |
| SGI: 1.09 (Revenue 6.76b / 6.22b) |
| TATA: -0.06 (NI 210.6m - CFO 512.0m) / TA 4.77b) |
| Beneish M = -2.97 (Cap -4..+1) = A |
As of June 12, 2026, the stock is trading at USD 78.78 with a total of 1,757,509 shares traded.
Over the past week, the price has changed by +7.80%,
over one month by +71.11%,
over three months by +74.41% and
over the past year by +275.14%.
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 | -16.5% |
P/E Trailing = 28.1347
P/E Forward = 17.0068
P/S = 0.638
P/B = 7.5002
Revenue TTM = 6.76b USD
EBIT TTM = 333.1m USD
EBITDA TTM = 571.1m USD
Long Term Debt = 971.0m USD (from longTermDebt, last fiscal year)
Short Term Debt = 268.0m USD (from shortTermDebt, last quarter)
Debt = 4.72b USD (from shortLongTermDebtTotal, last quarter) + Leases 1.87b
Net Debt = 4.51b USD (calculated: Debt 4.72b - CCE 207.0m)
Enterprise Value = 8.83b USD (4.31b + Debt 4.72b - CCE 207.0m)
Interest Coverage Ratio = 4.93 (Ebit TTM 333.1m / Interest Expense TTM 67.5m)
EV/FCF = 28.11x (Enterprise Value 8.83b / FCF TTM 314.0m)
FCF Yield = 3.56% (FCF TTM 314.0m / Enterprise Value 8.83b)
FCF Margin = 4.64% (FCF TTM 314.0m / Revenue TTM 6.76b)
Net Margin = 3.11% (Net Income TTM 210.6m / Revenue TTM 6.76b)
Gross Margin = 36.93% ((Revenue TTM 6.76b - Cost of Revenue TTM 4.26b) / Revenue TTM)
Gross Margin QoQ = 37.63% (prev 37.67%)
Tobins Q-Ratio = 1.85 (Enterprise Value 8.83b / Total Assets 4.77b)
Interest Expense / Debt = 1.43% (Interest Expense 67.5m / Debt 4.72b)
Taxrate = 8.82% (23.5m / 266.9m)
NOPAT = 303.7m (EBIT 333.1m * (1 - 8.82%))
Current Ratio = 1.26 (Total Current Assets 1.63b / Total Current Liabilities 1.29b)
Debt / Equity = 5.98 (Debt 4.72b / totalStockholderEquity, last quarter 790.0m)
Debt / EBITDA = 7.91 (Net Debt 4.51b / EBITDA 571.1m)
Debt / FCF = 14.38 (Net Debt 4.51b / FCF TTM 314.0m)
Total Stockholder Equity = 744.8m (last 4 quarters mean from totalStockholderEquity)
RoA = 4.50% (Net Income 210.6m / Total Assets 4.77b)
RoE = 28.27% (Net Income TTM 210.6m / Total Stockholder Equity 744.8m)
RoCE = 19.41% (EBIT 333.1m / Capital Employed (Equity 744.8m + L.T.Debt 971.0m))
RoIC = 8.57% (NOPAT 303.7m / Invested Capital 3.54b)
WACC = 7.70% (E(4.31b)/V(9.03b) * Re(14.71%) + D(4.72b)/V(9.03b) * Rd(1.43%) * (1-Tc(0.09)))
Discount Rate = 14.71% (= CAPM, Blume Beta Adj.) -> capped to 13.17%
Shares (quarterly) Correlation: 62.93 | Cagr: 3.28%
[DCF] Terminal Value 77.97% ; FCFF base≈272.0m ; Y1≈311.8m ; Y5≈458.9m
[DCF] Fair Price = 30.10 (EV 6.91b - Net Debt 4.51b = Equity 2.39b / Shares 79.4m; r=8.35% [WACC [floored]]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: 37.24 | EPS CAGR: 5.83% | SUE: -0.32 | # QB: 0
Revenue Correlation: 82.84 | Revenue CAGR: 2.84% | SUE: 1.74 | # QB: 7
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=+0.33% | Revisions=+50% | GrowthEPS=+16.1% | GrowthRev=+6.3%
EPS next Year (2028-01-31): EPS=4.17 | Chg30d=+1.63% | Revisions=+33% | GrowthEPS=+19.6% | GrowthRev=+4.2%
[Analyst] Revisions Ratio: +50%