# Victoria's Secret & Co. (VSXY.US)

Canonical: https://gigainvestors.com/s/VSXY

Analysis as of: 2026-10-16T07:32:58.630Z. Financial observations: FY2020–FY2027.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $90.53 per share; close as of 2026-10-15.

Estimated value: low $42.06 per share, central $47.19 per share, high $54.03 per share. Buy at or below the central value $47.19 per share. Valuation as of 2026-10-16T07:32:58.630Z; scenarios are not confidence intervals.

Expected annual return: 6.4% at the stated quote. About 6.4% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: fail

- 3 revenue declines in the last 10 years (informational)

- operating margin variation exceeds 0.35

- Financial history: 8 years

- Years with declining revenue: 3

- Years with a net loss: 2

- Operating margin variation: 2.02×

Chart: Operating margin; fiscal year observations.

- FY2020: -0.12×

- FY2021: -0.02×

- FY2022: 0.13×

- FY2023: 0.08×

- FY2024: 0.04×

- FY2025: 0.05×

- FY2026: 0.04×

- LTM to Jul 2026: 0.08×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 8.7%

- ROIC, second-lowest year: 7.8%

- Typical minus recent gross margin: -0.1 pp

- Typical gross margin (annual median): 36.3%

- Recent gross margin (lower of latest and 3-year median): 36.4%

- Years with nonpositive capital: 0

- Capital spending / revenue: 2.9%

- ROIC including acquisitions, ten-year median: 11.8%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2021: -3.0%

- FY2022: 27.7%

- FY2023: 16.3%

- FY2024: 7.8%

- FY2025: 8.6%

- FY2026: 8.7%

### economics: pass

- Owner earnings / net income, 5-yr: 1.28×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $1.8B

- Net income, five-year total: $1.4B

- Working capital / revenue, annual change: 0.6 pp

Chart: Annual owner cash / profit; fiscal year observations.

- FY2022: 1.21×

- FY2023: 1.32×

- FY2024: 1.26×

- FY2025: 1.48×

- FY2026: 1.32×

### management: pass

- Per-share earnings: -0.82 to 1.94 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 5-year annual growth: -1.2%

- Diluted shares, 5-year annual growth: -1.2%

- Per-share value change: $2.76

- Per-share value, starting three-year median: -$0.82

- Per-share value, ending three-year median: $1.94

- Buyback history: 0 years

- Debt-funded buybacks: No

- ROIC, last three-year median: 8.6%

Chart: Earnings per share; fiscal year observations.

- FY2020: -$10.19

- FY2021: -$0.82

- FY2022: $7.18

- FY2023: $4.14

- FY2024: $1.38

- FY2025: $2.04

- FY2026: $1.94

### accounting: pass

- Sloan accruals: -6.7%

- Receivables to sales index (DSRI): 1.11×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 11.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 3.10×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.72×

Chart: Sloan accruals; fiscal year observations.

- FY2021: -17.6%

- FY2022: -4.7%

- FY2023: -1.9%

- FY2024: -6.1%

- FY2025: -5.7%

- FY2026: -6.7%

## Holders

## Price story

Price needs cash profits to grow 9.8% a year for ten years · "VSXY Raises 2026 Outlook as Brand Momentum and Margins Strengthen" (finance.yahoo.com, Sep 2026) · sales +5.5%

Story as of 2026-10-16T09:59:49.871Z; price observation 2026-10-15.

Price needs cash profits to grow 9.8% a year for ten years

- 2026-06-03: Victoria's Secret Q1 Earnings Top Guidance on Double-Digit Sales Growth ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/victorias-secret-q1-earnings-top-171200047.html))

- 2026-09-03: Victoria’s Secret shares slump 16% on weak Q3 operating income outlook ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/victoria-secret-shares-slump-16-123126159.html))

### Sales · FY2026–2027

sales +5.5%; source https://www.sec.gov/Archives/edgar/data/1856437/000185643726000004/vsco-20260131.htm; observed 2026-03-20.

- FY2020: $7.5B 

- FY2021: $5.4B 

- FY2022: $6.8B 

- FY2023: $6.3B 

- FY2024: $6.2B 

- FY2025: $6.2B 

- FY2026: $6.6B 

- FY2027: $6.9B 

### Gross margin · FY2026

gross margin 36.4%; source https://www.sec.gov/Archives/edgar/data/1856437/000185643726000004/vsco-20260131.htm; observed 2026-03-20.

- FY2020: 27.5% 

- FY2021: 29.0% 

- FY2022: 40.7% 

- FY2023: 35.6% 

- FY2024: 36.3% 

- FY2025: 36.7% 

- FY2026: 36.4% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in apparel retail; annual sales are USD 6.6 billion.

- Source: https://www.sec.gov/Archives/edgar/data/1856437/000185643726000004/vsco-20260131.htm (filed 2026-03-20); FY2026: revenue 6553000000; grossProfit 2384000000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); VSXY.US: 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; and accessories and beauty products under the Victoria's Secret, PINK, and Adore Me brands. It provides its products through its retail stores; websites, such as VictoriasSecret.com, PINK.com, AdoreMe.com, and DailyLook.com; and other digital channels. The company also operates stores under the franchise, license, and wholesale arrangements. Victoria's Secret & Co. was incorporated in 2021 and is based in Reynoldsburg, Ohio.

### Why customers stay

Margins ranged from 36.3% to 36.7% during 2024–26; it earns 8.7% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-20); FY2024: grossProfit / revenue = 36.3%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-20); FY2025: grossProfit / revenue = 36.7%.

- Source: https://www.sec.gov/Archives/edgar/data/1856437/000185643726000004/vsco-20260131.htm (filed 2026-03-20); FY2026: grossProfit / revenue = 36.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-20); 7-year return on capital observations [[2021,-0.030373049105443473],[2022,0.2774408620304098],[2023,0.16299690579887793],[2024,0.0781806077243624],[2025,0.08639169953695763],[2026,0.08741398377979848]]; median 0.08690284165837805. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid no dividends in 7 years.

- Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001856437.json#0001856437-22-000007 (filed 2026-03-20); FY2020: growth capex 0; upkeep 225000000; owner earnings 52000000. Growth capex / owner earnings = 0.

- Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001856437.json#0001856437-23-000013 (filed 2026-03-20); FY2021: growth capex 0; upkeep 127000000; cash acquisitions 0; owner earnings 522000000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001856437.json#0001856437-24-000005 (filed 2026-03-20); FY2022: growth capex 0; upkeep 169000000; cash acquisitions 0; owner earnings 780000000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-20); FY2023: growth capex 0; upkeep 164000000; cash acquisitions 369000000; owner earnings 458000000. Growth capex plus acquisitions / owner earnings = 0.8056768558951966.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-20); FY2024: growth capex 0; upkeep 256000000; cash acquisitions 1000000; owner earnings 137000000. Growth capex plus acquisitions / owner earnings = 0.0072992700729927005.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-20); FY2025: growth capex 0; upkeep 178000000; cash acquisitions 0; owner earnings 245000000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://www.sec.gov/Archives/edgar/data/1856437/000185643726000004/vsco-20260131.htm (filed 2026-03-20); FY2026: growth capex 0; upkeep 187000000; cash acquisitions 0; owner earnings 212000000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-20); Dividend observations: [[2020,0],[2021,0],[2022,0],[2023,0],[2024,0],[2025,0],[2026,0]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 10.4% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); VSXY.US SharesStats.PercentInsiders = 10.418 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 9.8% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-20); Ten-year compound average after fade. Initial solved rate 0.12730866007529407. Price 90.53; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03.  Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2026-04: $51.83 per share

- 2026-05: $55.00 per share

- 2026-06: $83.48 per share

- 2026-07: $88.68 per share

- 2026-08: $85.41 per share

- 2026-09: $88.46 per share

- 2026-10: $90.53 per share

## Annual estimated value (USD per share)

- FY2024: low $63.60 per share, central $72.12 per share, high $83.45 per share

- FY2025: low $61.96 per share, central $70.32 per share, high $81.46 per share

- FY2026: low $38.60 per share, central $43.28 per share, high $49.51 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/1856437/000185643726000004/vsco-20260131.htm); period 2026-01-31, filed 2026-03-20.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.