Victoria's Secret

VSXY · NYSE · Consumer Discretionary · Financials, fiscal 2019 to 2025

VSXY · Last close · October 26, 2026

$94.96

Victoria's Secret's revenue rose 5.2% to $6.6 billion in fiscal 2025. Its operating margin was 4.1%, down from 5.0% a year earlier. Free cash flow was $312 million, up 26.3%. The diluted share count rose 2.5%.

VICTORIA'S SECRET & CO. Latest fiscal year ended January 31, 2026 10-K filed March 20, 2026 · 0001856437-26-000004 Updated October 11, 2026

Revenue

$6.6B

5.2%

Operating margin

4.1%

0.8 pts

Net income

$161M

2.4%

Free cash flow

$312M

26.3%

Return on capital

17.7%

0.2 pts

Market cap

$8.0B

Oct 26 close

P/E

21.1x

On $4.49 EPS, 4 qtrs

Operating margin is operating income as a share of revenue. Free cash flow is cash from operations minus capital spending. Return on capital is after-tax operating income as a share of the money invested in the business: debt plus equity, minus cash. Market cap is the last closing share price times the latest diluted share count, so it is approximate. P/E is the last close divided by diluted earnings per share over the last four quarters, or the latest fiscal year where the quarters aren't available; there is none when the company made a loss.

What Victoria's Secret does

Victoria's Secret sells women's bras, underwear, lingerie, sleepwear, swimwear, sportswear and loungewear, along with perfume and body care. Its brands are Victoria's Secret, PINK, which is aimed at young women, and Adore Me, an online lingerie brand. It also owns DailyLook, an online clothing subscription service. It sells through its own stores in malls and other shopping areas in the US, Canada and China, through its websites and apps, and through partner stores abroad.

The company reports a single segment but tracks three channels. In 2025 its North American stores brought in 54% of net sales, its digital channel 31%, and international sales, including royalties and wholesale sales to partners, 15%. Partners abroad pay it royalties based on their sales or buy its goods at a discount. It competes with specialty and discount retailers, department stores, large general retailers, online stores, store brands and newer brands.

At the end of fiscal 2025 it had 858 stores of its own or run through its China joint venture, 793 of them in the US and Canada, and partners ran 562 more in about 70 countries. Its clothing is made by outside suppliers abroad, while most of its beauty products are made in Ohio. It employed about 33,000 people, about 21,000 of them part-time, and most of them work in its stores.

Its biggest risks, as it describes them

Shoppers cutting back on spending when the economy weakens or confidence falls.
Tariffs and changing trade policy that raise the cost of the goods it imports.
Falling store traffic and the challenge of managing its store fleet.
Failing to keep up with fashion trends or to launch new products that sell.
Franchise, license, wholesale and joint venture partners could act in ways that harm its brands or results.

From Victoria's Secret's annual report on Form 10-K, filed March 20, 2026, in our words; the 10-K has the full description and every risk factor. Updated with each new 10-K.

Charts show fiscal years, from the 10-K filings.

Revenue and margins

Revenue

US$ billions, fiscal years

Margins

Percent of revenue

GrossOperatingNetFree cash flow

Net income and earnings per share

From fiscal 2021 to 2025, earnings per share fell 28.0% a year and net income 29.3% a year, while buybacks cut the share count by 8%.

Net income

US$ billions, fiscal years; loss years in red.

Diluted earnings per share

US$ per share, fiscal years, restated for any stock splits; loss years in red.

Returns on capital

Return on capital and on equity

Percent. Return on capital is after-tax operating income over the money invested in the business (debt plus equity, minus cash); return on equity is net income over shareholders' equity. Both use the average of opening and closing balances.

Return on capitalReturn on equity

Cash flow

Free cash flow

US$ billions. Cash from operations minus capital expenditure; negative years in red.

Payouts and share count

Dividends and buybacks

US$ billions, cash paid in each fiscal year

DividendsShare buybacks

Diluted share count

Weighted-average diluted shares, millions

Valuation

Two ways to value Victoria's Secret yourself, both starting from its filings: a discounted cash flow model and the price-to-earnings method.

What Victoria's Secret says to expect

Fiscal 2026: net sales and adjusted operating incomeThe Company is now forecasting fiscal year 2026 net sales to be in the range of $7.100 billion to $7.180 billion, an increase compared to the previously communicated guidance range of $7.030 billion to $7.130 billion, and compared to net sales of $6.553 billion in fiscal year 2025. At this forecasted level of net sales, the Company is now forecasting adjusted operating income for fiscal year 2026 to be in the range of $560 million to $590 million, an increase compared to previously communicated guidance range of $550 million to $580 million, and compared to fiscal year 2025 adjusted operating income of $403 million.
Third quarter 2026: net sales and operating incomeThe Company is forecasting net sales for the third quarter of 2026 to be in the range of $1.570 billion to $1.600 billion compared to net sales of $1.472 billion for the third quarter of 2025. At this forecasted level of net sales, operating income for the third quarter of 2026 is expected to be in the range of $10 million to $20 million compared to adjusted operating income of $0 million for the third quarter of 2025.

The company's own words, from its earnings release (Form 8-K, Exhibit 99), filed September 3, 2026. They are its expectations, not ours, and not a forecast or price target from The Filing Desk. Replaced when the next release is out.

Discounted cash flow (DCF)

A discounted cash flow (DCF) model values a business as the cash it may generate in future, discounted back to today. The starting figures come from Victoria's Secret's 10-K (or, for net cash and shares, its latest 10-Q) and the assumptions are yours: start from one of three example scenarios, then change any figure to see what it implies for a share, and how that compares with the last share price.

Value per share on three example scenarios, from Victoria's Secret's fiscal 2025 free cash flow of $312M, net cash of −$457M at January 31, 2026 and 83 million diluted shares, from its filings. The scenarios are fitted to Victoria's Secret: the base scenario's growth in years 1 to 5 is its revenue growth over the last 3 years, 1.1% a year; the cautious and optimistic ones are lower and higher, and growth in years 6 to 10 is halfway to the long-run rate. The base scenario's discount rate is 11%: 9% for a business of moderate risk (Apparel Retail), plus 1 point as a smaller company, worth $8.0B, plus 1 point for unsteady results (revenue fell in two of the last five years); the cautious and optimistic ones use a point more and a point less. Select one to load it into the calculator. These are the model's arithmetic on those assumptions, not a forecast or a price target.

From the filings

Starting free cash flow, US$ millions

Cash from operations minus capital spending in fiscal 2025.

Net cash, US$ millions

Cash and short-term investments minus debt and finance leases at January 31, 2026. Negative means net debt.

Diluted shares, millions

Weighted-average diluted shares in fiscal 2025.

Your assumptions

Start from

Fitted to Victoria's Secret's own revenue growth, as above. Cautious: growth of -1% then 0.5% a year, 2% after year 10, a 12% discount rate. Base: growth of 1% then 2% a year, 2.5% after year 10, a 11% discount rate. Optimistic: growth of 3% then 3% a year, 3% after year 10, a 10% discount rate.

Free cash flow growth, years 1 to 5 (% a year)

Free cash flow growth, years 6 to 10 (% a year)

Growth after year 10 (% a year)Long-run growth forever after year 10. Usually close to inflation, and always below the discount rate.

Discount rate (% a year)The yearly return an investor wants for the risk. A higher rate gives a lower value.

Value per share on these assumptions

—

Last close, October 26, 2026: $94.96
Value on these assumptions, against the last close: —

Cash flows in years 1 to 10, valued today: —
Everything after year 10, valued today: —
Plus net cash: —
Share of value from after year 10: —

Projected free cash flow

US$ billions. Each column is one year's projected free cash flow, split into what it is worth today and the part removed by discounting.

Value todayRemoved by discounting

How the value changes with two assumptions

Value per share in US$, with the growth rates above. The highlighted cell matches the current assumptions.

How the model works. Free cash flow grows at the first rate for five years and the second rate for five more, and each year is discounted at the discount rate. Everything after year 10 is valued as year-10 cash flow × (1 + growth after year 10) ÷ (discount rate − growth after year 10), discounted back ten years. Net cash is added and the total is divided by diluted shares. The result depends entirely on the assumptions. It is not a forecast, a price target or a recommendation. The last close is the consolidated US closing price, from Databento.

Price-to-earnings (P/E) method

Another common way to value a company is to multiply its earnings per share by a price-to-earnings (P/E) multiple: the number of years of today's earnings an investor pays for a share. A higher multiple usually means investors expect earnings to grow. Choose a multiple, for example from similar companies, to see the value it gives.

Value per share on three example scenarios, from Victoria's Secret's earnings per share of $4.49 (over the last four quarters). Each grows earnings for a year at the cash flow scenarios' rates and applies a multiple to next year's earnings: 17.7×, the middle of Victoria's Secret's own P/E today, its peers' median and its sector's median (the Consumer Discretionary median) for the base scenario, 20% less and more for the cautious and optimistic ones. The price is brought back a year at 12%, 11% and 10%. Select one to load it into the calculator. These are the model's arithmetic on those assumptions, not a forecast or a price target.

Earnings per share, US$

Diluted earnings per share over the four quarters to August 1, 2026, from the 10-Qs and 10-K.

P/E multiple

P/E today is the last close divided by the latest earnings per share, the four quarters' where available. Peers: Urban Outfitters, American Eagle Outfitters, Abercrombie & Fitch, Burlington Stores.

Earnings growth in the years ahead (% a year) Starts at Victoria's Secret's revenue growth over the last 3 years, 1.1% a year, as the base scenario does.

Earnings per share in the years ahead, US$

Year 1Year 2Year 3Year 4Year 5

Type your own estimate for any year; the years after it carry on at the growth rate.

Apply the multiple to earnings

A multiple on a future year's earnings gives the price then, brought back to today at the discount rate below.

Discount rate (% a year) The yearly return an investor wants for the risk, as in the cash flow model.

Value per share today at this multiple

—

Last close, October 26, 2026: $94.96
Value at this multiple, against the last close: —
Victoria's Secret's P/E at the last close: 21.1×

Company	Last close	Earnings per share	P/E today
Burlington StoresBURL	$241.26	$11.13	21.7×
Victoria's SecretVSXY	$94.96	$4.49	21.1×
Abercrombie & FitchANF	$164.73	$11.63	14.2×
Urban OutfittersURBN	$90.59	$6.41	14.1×
American Eagle OutfittersAEO	$18.81	$1.96	9.6×

How the P/E method works. Value per share is earnings per share times the multiple. On a future year's earnings, that gives the price in that year, which is brought back to today at the discount rate: price ÷ (1 + discount rate) for each year ahead. It is quick and easy to compare across companies, but it ignores debt and cash, and earnings can swing with one-off gains and charges, so a multiple says most about steady, profitable businesses. Like the cash flow model, the result depends entirely on the assumptions you choose. It is not a forecast, a price target or a recommendation.

Balance sheet

Fiscal year end	FY21	FY22	FY23	FY24	FY25
Cash and short-term investments	490	427	270	227	518
Debt incl. finance leases	982	1,275	1,124	977	975
Net debt (negative means net cash)	492	848	854	750	457
Net debt to EBITDA	0.4x	1.1x	1.6x	1.3x	0.9x
Debt to equity	3.8x	3.3x	2.7x	1.5x	1.1x
Interest coverage	32.2x	8.0x	2.5x	3.6x	3.9x
Current ratio	1.0x	1.1x	0.9x	1.1x	1.2x
Quick ratio	0.4x	0.4x	0.3x	0.3x	0.5x

US$ millions unless stated, at each fiscal year end. Net debt to EBITDA is debt minus cash, divided by operating income before depreciation and amortization: roughly how many years of those earnings the net debt equals. Debt to equity is debt as a multiple of shareholders' equity. Interest coverage is operating income divided by interest expense. The current ratio is current assets over current liabilities; the quick ratio leaves out inventory.

Insider trades

Over the 12 months between October 27, 2025 and October 26, 2026, 2 insiders bought $322,604 of Victoria's Secret shares on the open market, and 1 insider sold $212.4 million.

Date	Insider	Trade	Shares	Price	Value	Filing
Jul 28, 2026	Bbrc International Pte Ltd10% owner	Sold	798,920	$89.15	$71.2 million	Form 4
Jul 22, 2026	Bbrc International Pte Ltd10% owner	Sold	289,479	$88.89	$25.7 million	Form 4
Jun 26, 2026	Bbrc International Pte Ltd10% owner	Sold	276,171	$88.50	$24.4 million	Form 4
Jun 4, 2026	Bbrc International Pte Ltd10% owner	Sold	27,758	$80.03	$2.2 million	Form 4
Jun 2, 2026	Bbrc International Pte Ltd10% owner	Sold	1,107,672	$80.11	$88.7 million	Form 4
Apr 2, 2026	Anne SheehanDirector	Bought	4,842	$45.86	$222,054	Form 4
Apr 2, 2026	Donna JamesDirector	Bought	2,175	$46.23	$100,550	Form 4

Open-market purchases and sales by officers, directors and 10% owners, from their Form 4 filings with the SEC: one row per person, day and filing, at the day's average price. Grants, option exercises and shares withheld for tax aren't counted. Insiders buy and sell for many reasons, such as taxes, spreading their savings or a plan set up months earlier, so a trade on its own says little about where a company is heading. For information only, not investment advice. Insider trades at all companies

Piotroski F-score

The F-score counts how many of nine simple tests of profitability, funding and efficiency a company passed in a year (Piotroski, 2000). The more tests passed, the stronger the year: 8 or 9 is strong, 0 to 2 weak. Companies that report no gross profit are scored on the other eight.

Test	FY23	FY24	FY25
Net income is positive	Pass	Pass	Pass
Cash from operations is positive	Pass	Pass	Pass
Return on assets rose	Fail	Pass	Fail
Cash from operations exceeds net income	Pass	Pass	Pass
Debt fell relative to assets	Pass	Pass	Pass
Current ratio rose	Fail	Pass	Pass
Share count didn't rise	Pass	Fail	Fail
Gross margin rose	Pass	Pass	Fail
Revenue rose relative to assets	Fail	Pass	Pass
F-score	6 of 9	8 of 9	6 of 9
Accruals ratio	−6.0%	−5.7%	−7.1%

The accruals ratio is net income minus cash from operations, over average total assets.

Compare

Put Victoria's Secret side by side with any other company we cover: revenue, growth, margins, cash flow and returns, with ten years of charts.

Similar companies

Company	Year	Revenue growth	Operating margin	Free cash flow margin	Return on capital	Net debt to EBITDA	F-score	Compare
Victoria's Secret	FY25	5.2%	4.1%	4.8%	17.7%	0.9x	6
Urban Outfitters	FY26	11.1%	9.8%	5.1%	23.7%	−0.9x	8	Compare
American Eagle Outfitters	FY25	4.1%	4.1%	3.5%	11.5%	−0.4x	4	Compare
Abercrombie & Fitch	FY25	6.4%	13.3%	7.2%	91.0%	−0.9x	5	Compare
Burlington Stores	FY25	8.8%	—	1.5%	28.1%	0.6x	7	Compare

Each company's latest fiscal year. Fiscal years end in different months, so the periods don't line up exactly. Free cash flow margin is free cash flow as a share of revenue. Net debt to EBITDA is explained under the balance sheet, and the F-score above.

7 years of figures

Fiscal year	FY19	FY20	FY21	FY22	FY23	FY24	FY25
Income statement
Revenue	7,509	5,413	6,785	6,344	6,182	6,230	6,553
Revenue growth	—	−27.9%	25.4%	−6.5%	−2.5%	0.8%	5.2%
Gross profit	2,063	1,571	2,760	2,258	2,242	2,284	2,384
Research and development	—	—	—	—	—	—	—
Operating income	−892	−101	870	478	246	310	271
Net income	−897	−72	646	348	109	165	161
Diluted EPS (US$)	−10.16	−0.82	7.18	4.14	1.39	2.05	1.93
Diluted shares (millions)	88	88	90	84	79	81	83
Cash flow
Cash from operations	315	674	851	437	389	425	499
Capital expenditure	225	127	169	164	256	178	187
Free cash flow	90	547	682	273	133	247	312
Dividends paid	0	0	0	0	0	0	0
Share buybacks	0	0	250	250	125	0	0
Acquisitions	0	0	0	369	1	0	0
Stock-based compensation	38	25	33	48	56	60	55
Balance sheet at fiscal year end
Cash and short-term investments	245	335	490	427	270	227	518
Debt incl. finance leases	—	97	982	1,275	1,124	977	975
Total assets	—	4,229	4,344	4,711	4,600	4,532	5,013
Total liabilities	—	3,338	4,087	4,310	4,162	3,868	4,103
Shareholders' equity	1,314	891	257	383	417	640	856
Margins and ratios
Gross margin	27.5%	29.0%	40.7%	35.6%	36.3%	36.7%	36.4%
Operating margin	−11.9%	−1.9%	12.8%	7.5%	4.0%	5.0%	4.1%
Net margin	−11.9%	−1.3%	9.5%	5.5%	1.8%	2.6%	2.5%
Free cash flow margin	1.2%	10.1%	10.1%	4.3%	2.1%	4.0%	4.8%
Return on capital	—	—	95.1%	38.8%	15.3%	17.5%	17.7%
Return on equity	—	—	112.5%	108.8%	27.2%	31.2%	21.5%
Return on assets	—	—	15.1%	7.7%	2.3%	3.6%	3.4%
Net debt to EBITDA	—	−1.1x	0.4x	1.1x	1.6x	1.3x	0.9x

US$ millions unless stated. Where a later 10-K restated a year, the latest filed figure is shown. Download all figures (CSV, US$ millions)

Source: Victoria's Secret's Form 10-K filings, from SEC EDGAR. For information only, not investment advice. The Filing Desk is not affiliated with Victoria's Secret.