Victoria's Secret & Co (VSXY) AI Stock Analysis
VSXY AI stock analysis summary
AI ResearchVictoria's Secret & Co (VSXY) is a specialty retailer of women's intimate apparel, beauty, and lifestyle products. For the trailing twelve months, the company generated $6.91B in revenue with a return on equity of 46.9%. In its latest quarter ended July 31, 2026, revenue increased 10.4% year-over-year while quarterly earnings grew 990.0%.
- Market cap
- $6.97B
- Revenue (TTM)
- $6.91B
- P/E
- 19.5x fwd 13.6x
- 1Y return
- — S&P 500 16.8%
- Avg. target
- $93.58 7.1% vs last close
Bull case
- Quarterly earnings surged 990.0% year-over-year in the quarter ended July 31, 2026, driven by a 10.4% increase in quarterly revenue.
- Free cash flow rose to $312.0M in FY2026 from $247.0M in FY2025, supported by $499.0M in operating cash flow.
- Analysts project current fiscal year EPS to reach $4.71, representing an estimated growth rate of 56.9%.
Bear case
- The company carries $2.90B in total debt against $522.0M in cash, leading to a high debt-to-equity ratio of 2.93.
- Revenue grew at a modest 3-year CAGR of 1.1% from FY2023 to FY2026, while FY2026 net margin of 2.5% remained well below FY2023 net margin of 5.5%.
- Short interest represents 17.5% of the float, accompanied by high stock volatility reflected in a beta of 2.01.
What Victoria's Secret does
Victoria's Secret & Co. operates as a specialty retailer of women's intimate, and other apparel and beauty products worldwide. The company offers bras, panties, lingerie, casual sleepwear, apparel, lounge, sport, and swim products, as well as prestige fragrances and body care products. It also provides accessories and beauty products under the Victoria's Secret, PINK, and Adore Me brands. Victoria's Secret sells products through retail stores, websites including VictoriasSecret.com, PINK.com, AdoreMe.com, and DailyLook.com, digital channels, and franchise, license, and wholesale arrangements.
Growth and profitability
Annual revenue increased from $6.34B in FY2023 to $6.55B in FY2026, reflecting a 3-year revenue CAGR of 1.1%. After revenue fell 2.6% in FY2024 to $6.18B, it rebounded with 0.8% growth in FY2025 and 5.2% growth in FY2026. Net income was $348.0M in FY2023, $109.0M in FY2024, $165.0M in FY2025, and $161.0M in FY2026, with FY2026 net margin at 2.5% and EPS at $2.77. In the latest quarter ended July 31, 2026, quarterly revenue grew 10.4% year-over-year, while quarterly earnings expanded 990.0%. For the trailing twelve months, revenue reached $6.91B, operating margin stood at 7.8%, and EPS was $4.48.
Balance sheet and cash flow
As of July 31, 2026, Victoria's Secret held $522.0M in cash and short-term investments against $2.90B in total debt, resulting in net debt of $2.38B. Shareholders' equity was $990.0M, bringing the debt-to-equity ratio to 2.93, while total assets totaled $5.16B and the current ratio was 1.36. In FY2026, operating cash flow reached $499.0M and free cash flow was $312.0M after capital expenditures of $187.0M. The company's 5-year share count change shows a reduction of 8.5%.
Valuation and performance
At a share price of $87.34 on October 16, 2026, Victoria's Secret has a market capitalization of $6.97B and an enterprise value of $9.02B. The stock trades at a trailing P/E of 19.5x and an EV/EBITDA of 11.7x, both above the median of its US-listed Consumer Cyclical peers at 18.0x and 11.1x, respectively. However, its forward P/E of 13.6x sits below the peer median of 14.1x. Its price-to-sales ratio is 1.0x compared to the peer median of 0.7x. Over the past year, the broader market S&P 500 (SPY) returned 16.8%, while over five years it gained 83.0%. The stock has a beta of 2.01.
What analysts expect
Wall Street analysts issue 3 Strong Buy, 3 Buy, and 6 Hold recommendations, with 0 Sell and 0 Strong Sell ratings. The mean price target is $93.58, representing an upside of 7.1% from the last close of $87.34. For the current fiscal year ending January 31, 2027, consensus estimates project revenue of $7.18B and EPS of $4.71, indicating 56.9% EPS growth. The company beat EPS estimates in 3 of the last 4 quarters, and its next earnings date is December 4, 2026.
Key risks and what to watch
- High financial leverage, marked by net debt of $2.38B, could strain flexibility if cash generation slows.
- Stock volatility is elevated, as demonstrated by a beta of 2.01 and a wide 52-week trading range between $43.12 and $102.46.
- The trailing operating margin of 7.8% trails the US-listed Consumer Cyclical peer median of 8.8%.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this VSXY AI stock analysis
This page is an AI-written research summary of Victoria's Secret & Co (VSXY). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: VSXY income statement, VSXY balance sheet, VSXY key metrics, VSXY analyst forecast, VSXY chart. See the VSXY stock overview for the latest quote and news.
VSXY AI stock analysis FAQ
What is Victoria's Secret's current valuation?
At a price of $87.34, Victoria's Secret has a market capitalization of $6.97B and trades at a trailing P/E of 19.5x and forward P/E of 13.6x.
How fast is Victoria's Secret growing?
In the latest quarter ended July 31, 2026, revenue increased 10.4% year-over-year, while trailing twelve-month revenue stood at $6.91B. Over the longer term, annual revenue expanded at a 3-year CAGR of 1.1% between FY2023 and FY2026.
Does Victoria's Secret pay a dividend?
Victoria's Secret does not currently pay a dividend based on reported figures, though its share count decreased by 8.5% over the past 5 years.
What are analysts forecasting for VSXY?
The consensus mean price target is $93.58, which is 7.1% above its last close of $87.34. For the fiscal year ending January 31, 2027, analysts expect EPS of $4.71 on revenue of $7.18B.