Victoria's Secret & Co. (VSXY)

Price$74.45Cached quoteAs of 2026-09-04 16:23 UTC

AI: Fair-priced

Price checkThe stock looks roughly fair against management’s current earnings outlook after a sharp rebound.

Using the latest quote and management’s fiscal 2026 adjusted earnings outlook, the shares trade at roughly 16–17 times expected earnings. That is reasonable for a retailer growing sales and rebuilding margins, but not obviously cheap because demand and profits can swing with fashion cycles and holidays. A bull case needs sales near the top of guidance and an adjusted operating margin around 8%; a bear case assumes flat sales and margin slipping toward 6%.

Big pictureLiquidity is solid, but first-half cash generation was helped materially by a one-time tariff refund.

At August 1, cash was $522 million against about $975 million of debt, while the asset-based revolver had $649 million available and no borrowings outstanding. First-half operating cash was $265 million and capital spending was $128 million. However, $148 million of tariff-refund cash boosted operating cash. Mechanically removing that refund leaves cash generation after capital spending around flat, so durable free cash flow—cash left after necessary investment—still needs confirmation through the holiday season.

Business strengthSales momentum, regular-price selling, and adjusted profitability improved meaningfully across brands, channels, and international markets.

Second-quarter sales rose 10% and comparable sales rose 9%, while international sales increased 20%. Adjusted operating income more than doubled to $124 million from $55 million, excluding unusual items such as tariff refunds. Management also cited stronger regular-price selling and improved merchandise margins, signs that growth is not coming only from promotions. The business still depends on brand relevance and product execution, but Victoria’s Secret, PINK, Beauty, and Adore Me provide several paths to growth.

What could change the storyHoliday demand, margin durability, debt reduction, and per-share discipline will decide whether upside exceeds current expectations.

The bullish path is sustained mid-single-digit comparable growth, an adjusted operating margin near 8%, continued debt paydown, and buybacks that actually reduce the share count. The bearish path is weaker holiday traffic, heavier discounting, renewed tariff pressure, and margins falling toward 6% while debt stays elevated. The company repurchased $100 million of stock in the first quarter and still had $150 million authorized, yet diluted weighted-average shares were about 2% higher year over year, so dilution deserves monitoring.

AI: News

Second-quarter growth holdsSales rose 10%, adjusted profit beat guidance, and management lifted its full-year sales and operating-income outlook.

On September 3, Victoria’s Secret reported second-quarter sales of $1.611 billion and adjusted operating income of $124 million, both showing substantial improvement from a year earlier. Management raised fiscal 2026 sales guidance to $7.100–$7.180 billion and adjusted operating income guidance to $560–$590 million. Reported profit was much higher because tariff-refund recoveries were included in GAAP results, so adjusted figures are the cleaner measure of ongoing performance.

Shares drop after earningsInvestors sold the stock sharply after revenue missed consensus and the guidance increase looked modest.

The shares fell about 13% on September 3 even though adjusted earnings beat expectations. MarketWatch reported that sales came in just below Wall Street’s consensus, ending a long streak of top-line beats. The reaction shows how much optimism had already been priced in after the stock’s large prior-year advance. For valuation, that matters because future upside now depends more on sustained sales growth and margin delivery than on a simple turnaround narrative.

Technology veteran joins boardThe board added a former Starbucks technology chief to deepen digital, cybersecurity, and transformation expertise.

Victoria’s Secret announced on August 20 that Gerri Martin-Flickinger would join the board effective September 14. She previously served as Starbucks’ chief technology officer and has experience in cloud systems, digital customer platforms, and enterprise transformation. The appointment is not a near-term earnings catalyst, but it supports management’s efforts to improve technology, customer experience, and operating capabilities, areas that can influence conversion, loyalty, cybersecurity resilience, and long-term efficiency.

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Revenue

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2020

2021

2022

2023

2024

2025

Net income

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2025

Free cash flow

2019

2020

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Total cash / debt

CashTotal debt

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Financial statements

	2025	2024	2023	2022	2021	2020	2019
Revenue	$6.55B	$6.23B	$6.18B	$6.34B	$6.79B	$5.41B	$7.51B
Gross profit	$2.38B	$2.28B	$2.24B	$2.26B	$2.76B	$1.57B	$2.06B
Gross margin	36.38%	36.66%	36.27%	35.59%	40.68%	29.02%	27.47%
Operating expenses	$2.11B	$1.97B	$2.00B	$1.78B	$1.89B	$1.67B	$2.96B
Operating income	$271.0M	$310.0M	$246.0M	$478.0M	$870.0M	−$101.0M	−$892.0M
Operating margin	4.14%	4.98%	3.98%	7.53%	12.82%	−1.87%	−11.88%
EBITDA	$509.0M	$568.0M	$530.0M	$752.0M	$1.17B	$225.0M	−$481.0M
EBITDA margin	7.77%	9.12%	8.57%	11.85%	17.29%	4.16%	−6.41%
Net income	$161.0M	$165.0M	$109.0M	$348.0M	$646.0M	−$72.0M	−$897.0M
Net profit margin	2.46%	2.65%	1.76%	5.49%	9.52%	−1.33%	−11.95%
Basic EPSper basic share	$2.00	$2.11	$1.41	$4.24	$7.34	-$0.82	-$10.16
Diluted EPSper diluted share	$1.93	$2.05	$1.39	$4.14	$7.18	-$0.82	-$10.16

Review official source filings ↗

Owners

Reported shareholders

Reference date Jun 30, 2026

≈14.98%of listed shares

BlackRock, Inc.11.91M shares · Jun 30, 2026

View holders

Top 20 reported holders of VSXY
Holder	% owned
BlackRock, Inc.	≈14.98%11.91M shares
FMR LLC	≈11.87%9.44M shares
BBRC INTERNATIONAL PTE LTD	≈11.19%8.9M shares
BBFIT INVESTMENTS PTE LTD	≈11.19%8.9M shares
VANGUARD PORTFOLIO MANAGEMENT LLC	≈6.20%4.93M shares
VANGUARD CAPITAL MANAGEMENT LLC	≈4.49%3.57M shares
STATE STREET CORP	≈3.86%3.07M shares
GOLDMAN SACHS GROUP INC	≈2.65%2.11M shares
GEODE CAPITAL MANAGEMENT, LLC	≈2.65%2.11M shares
ARROWSTREET CAPITAL, LIMITED PARTNERSHIP	≈2.47%1.96M shares
DIMENSIONAL FUND ADVISORS LP	≈2.44%1.94M shares
FULLER & THALER ASSET MANAGEMENT, INC.	≈2.15%1.71M shares
T. Rowe Price Investment Management, Inc.	≈1.75%1.39M shares
CHARLES SCHWAB INVESTMENT MANAGEMENT INC	≈1.74%1.38M shares
PRICE T ROWE ASSOCIATES INC /MD/	≈1.67%1.33M shares
AMERIPRISE FINANCIAL INC	≈1.59%1.26M shares
AMERICAN CENTURY COMPANIES INC	≈1.55%1.23M shares
Divisadero Street Capital Management, LP	≈1.29%1.03M shares
D. E. Shaw & Co., Inc.	≈1.23%979.4K shares
JUPITER ASSET MANAGEMENT LTD	≈1.11%884.33K shares

Percentages use 79.49M shares of this listed class outstanding on May 29, 2026. ≈ compares the latest reported holding with a share total from a different date; it is not a confirmed current stake.

Gray completes the 100% scale. Reported positions may overlap; holders have different reporting dates.

Source: SEC Form 13F ↗Updated Sep 29, 2026 · Quarterly data

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys12$38.18M disclosed value

Sells (SEC code S)3$115.40M disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
Jun 26, 2026Form 4	BBRC INTERNATIONAL PTE LTDTenPercentOwner	SellCommon Stock · indirect	276.2K	$88.50	$24.44M	8.90M
Jun 4, 2026Form 4	BBRC INTERNATIONAL PTE LTDTenPercentOwner	SellCommon Stock · indirect	27.8K	$80.03	$2.22M	9.18M
Jun 2, 2026Form 4	BBRC INTERNATIONAL PTE LTDTenPercentOwner	SellCommon Stock · indirect	1.11M	$80.11	$88.74M	9.20M
Apr 2, 2026Form 4/A	Sheehan AnneDirector	BuyCommon Stock	633	$45.86	$29.0K	30.1K
Apr 2, 2026Form 4	Sheehan AnneDirector	BuyCommon Stock	4.8K	$45.86	$222.1K	34.3K