📊 VSCO Key Takeaways
Is Victoria's Secret & Co. (VSCO) a Good Investment?
Victoria's Secret exhibits severe financial distress with negative operating cash flow (-$137M) and free cash flow (-$191M), indicating unsustainable cash burn despite 5.2% revenue growth. Critical leverage concerns include interest coverage of only 1.2x on $986M debt and a weak quick ratio of 0.41x, while declining earnings (-2.4% YoY) with razor-thin 3.1% net margins and 6.1% ROE signal fundamental operational deterioration.
Victoria's Secret & Co. Key Strengths (VSCO)
- Revenue growth of 5.2% year-over-year demonstrates market demand resilience
- Gross margin of 37.5% is defensible for specialty retail segment
- Stockholders equity of $790M provides some capital cushion
VSCO Stock Risks: Victoria's Secret & Co. Investment Risks
- Negative free cash flow of -$191M and operating cash flow of -$137M reveal unsustainable capital structure with company burning cash
- Interest coverage ratio of 1.2x is critically tight with minimal buffer; any earnings decline threatens debt covenant compliance
- Net income declining 2.4% YoY while net margin compresses to 3.1% indicates structural profitability challenges in competitive retail environment
Key Metrics to Watch
- Operating cash flow trajectory - must return to positive within 2-3 quarters
- Interest coverage ratio and debt covenant compliance status
- Gross margin sustainability and SG&A expense control
Victoria's Secret & Co. (VSCO) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Victoria's Secret & Co. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
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 |
|---|---|---|---|
| Q1 2026 | $1.4B | -$2.0M | $-0.02 |
| 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 |
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 D with 88% confidence, based on fundamental analysis of SEC EDGAR filings.
What are VSCO's key strengths?
Claude: Revenue growth of 5.2% year-over-year demonstrates market demand resilience. Gross margin of 37.5% is defensible for specialty retail segment.
What are the risks of investing in VSCO?
Claude: Negative free cash flow of -$191M and operating cash flow of -$137M reveal unsustainable capital structure with company burning cash. Interest coverage ratio of 1.2x is critically tight with minimal buffer; any earnings decline threatens debt covenant compliance.
What is VSCO's revenue and growth?
Victoria's Secret & Co. reported revenue of $1.6B.
Does VSCO pay dividends?
Victoria's Secret & Co. pays dividends, with $7.0M distributed to shareholders in the trailing twelve months.
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 $0.56.
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 D grade with 88% 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 6.1% (sector avg: 18%), net margin of 3.1% (sector avg: 8%). Compare these metrics with sector averages to assess valuation.
What is VSCO's AI grade for 2026?
Our dual AI analysis gives Victoria's Secret & Co. a combined D 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 $-137.0M, with capital expenditures of $54.0M. FCF margin is -12.2%.
How does VSCO compare to other Consumer stocks?
Vs Consumer sector averages: Net margin 3.1% (avg: 8%), ROE 6.1% (avg: 18%), current ratio 1.26 (avg: 1.5).