📊 VSCO Key Takeaways
Is Victoria's Secret & Co. (VSCO) a Good Investment?
VSCO faces severe operational headwinds with net income declining 14.8% YoY despite 5.2% revenue growth, indicating significant margin compression in a capital-intensive retail environment. Weak quick ratio (0.54x) combined with moderate leverage (1.13x debt/equity) and anemic net margins (2.5%) limit financial flexibility and create vulnerability to market disruption.
Victoria's Secret & Co. Key Strengths (VSCO)
- Revenue growth of 5.2% YoY demonstrates maintained market demand in competitive retail segment
- Free cash flow generation of $312M (4.8% FCF margin) provides some financial flexibility
- Gross margin of 36.4% is reasonable for women's apparel retail category
VSCO Stock Risks: Victoria's Secret & Co. Investment Risks
- Net income declined 14.8% YoY despite revenue growth indicating severe margin compression and cost control deterioration
- Quick ratio of 0.54x signals potential liquidity stress; well below healthy 1.0x threshold for retail
- Razor-thin net margin of 2.5% and operating margin of 4.1% leave minimal room for operational missteps or market disruption
- Debt-to-equity of 1.13x combined with weak profitability and liquidity creates refinancing risk
Key Metrics to Watch
- Operating margin trend - critical to assess if margin compression stabilizes or worsens
- Quick ratio and working capital - monitor liquidity stress indicators
- Free cash flow sustainability - evaluate if cash generation can support debt service amid profitability decline
Victoria's Secret & Co. (VSCO) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 4.8% FCF margin may limit capital allocation flexibility.
VSCO Profit Margin, ROE & Profitability Analysis
VSCO vs Consumer Sector: How Victoria's Secret & Co. Compares
How Victoria's Secret & Co. compares to Consumer sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Victoria's Secret & Co. Stock Overvalued? VSCO Valuation Analysis 2026
Based on fundamental analysis, Victoria's Secret & Co. has mixed fundamental signals relative to the Consumer sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Victoria's Secret & Co. Balance Sheet: VSCO Debt, Cash & Liquidity
VSCO Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Victoria's Secret & Co.'s revenue has declined by 13% over the 5-year period, indicating business contraction. The most recent EPS of $1.39 reflects profitable operations.
VSCO Revenue Growth, EPS Growth & YoY Performance
VSCO Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $1.3B | -$23.0M | $-0.28 |
| Q2 2025 | $1.4B | $14.0M | $0.18 |
| Q1 2025 | $1.4B | -$2.0M | $-0.02 |
| Q3 2024 | $1.3B | -$28.0M | $-0.36 |
| Q2 2024 | $1.4B | -$1.0M | $-0.01 |
| Q1 2024 | $1.4B | $1.0M | $0.01 |
| Q3 2023 | $1.3B | $24.0M | $0.29 |
| Q2 2023 | $1.4B | -$1.0M | $-0.01 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Victoria's Secret & Co. Dividends, Buybacks & Capital Allocation
VSCO SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Victoria's Secret & Co. (CIK: 0001856437)
📋 Recent SEC Filings
❓ Frequently Asked Questions about VSCO
What is the AI rating for VSCO?
Victoria's Secret & Co. (VSCO) has an AI grade of C with 65% confidence, based on fundamental analysis of SEC EDGAR filings.
What are VSCO's key strengths?
Claude: Revenue growth of 5.2% YoY demonstrates maintained market demand in competitive retail segment. Free cash flow generation of $312M (4.8% FCF margin) provides some financial flexibility.
What are the risks of investing in VSCO?
Claude: Net income declined 14.8% YoY despite revenue growth indicating severe margin compression and cost control deterioration. Quick ratio of 0.54x signals potential liquidity stress; well below healthy 1.0x threshold for retail.
What is VSCO's revenue and growth?
Victoria's Secret & Co. reported revenue of $6.6B.
Does VSCO pay dividends?
Victoria's Secret & Co. does not currently pay dividends.
Where can I find VSCO SEC filings?
Official SEC filings for Victoria's Secret & Co. (CIK: 0001856437) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is VSCO's EPS?
Victoria's Secret & Co. has a diluted EPS of $1.93.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is VSCO's fundamental grade?
Based on our AI fundamental analysis in June 2026, Victoria's Secret & Co. has a C grade with 65% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is VSCO stock overvalued or undervalued?
Valuation metrics for VSCO: ROE of 18.8% (sector avg: 18%), net margin of 2.5% (sector avg: 8%). Higher ROE suggests strong returns relative to peers.
What is VSCO's AI grade for 2026?
Our dual AI analysis gives Victoria's Secret & Co. a combined C grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is VSCO's free cash flow?
Victoria's Secret & Co.'s operating cash flow is $499.0M, with capital expenditures of $187.0M. FCF margin is 4.8%.
How does VSCO compare to other Consumer stocks?
Vs Consumer sector averages: Net margin 2.5% (avg: 8%), ROE 18.8% (avg: 18%), current ratio 1.25 (avg: 1.5).