Victoria's Secret & Co. (VSCO) Stock Analysis & Financial Insights for 2025
Victoria's Secret & Co. (VSCO) is a leading retailer in the intimate apparel and beauty market, with a dominant presence in North America and a growing international footprint. This comprehensive analysis dives into VSCO stock performance, financial health, competitive positioning, and investment potential as of March 13, 2025. Whether you're an investor seeking the latest VSCO stock forecastor exploring Victoria's Secret stock pricetrends, our detailed report offers actionable insights for your portfolio.
Business Overview: A Dominant Player with Global Ambitions
Victoria's Secret & Co. generates significant revenue from its North America Retail segment, which accounted for 80.0% of total revenue ($4,980 million) in fiscal 2025. While North America remains the core market (contributing 87.1% of revenue), the company is strategically expanding internationally. International revenue grew to 12.9% ($746 million) in fiscal 2025 from 10.3% in 2021, with a target of 15-20% by 2030. Key growth markets include China, the Middle East, and Europe, supported by partnerships and digital channels.
VSCO leverages strong brand equity with its iconic Victoria’s Secretand PINKlines, fostering customer loyalty and premium pricing. The company’s omnichannel strategy, blending online and in-store experiences, positions it well against competitors, though challenges from fast-fashion and direct-to-consumer brands persist.
Financial Performance: Volatility with Signs of Recovery
Over the past five fiscal years (2021–2025), VSCO achieved a revenue CAGR of 3.6%, growing from $5,413 million to $6,230 million. However, year-over-year growth has been inconsistent, with declines of 6.5% in FY2023 and 2.6% in FY2024, followed by a modest 0.8% recovery in FY2025. Profitability metrics also fluctuated, with gross margin at 36.7% in FY2025 and net income rebounding to $165 million (2.6% margin). High debt levels ($4,419 million) and interest expenses remain a concern, impacting financial flexibility.
Free cash flow (FCF) showed recovery at $247 million in FY2025, while return metrics like ROIC (8.7%) lag behind the industry average. Consensus estimates project revenue growth of 1.9% in FY2026 and 2.4% in FY2027, signaling gradual improvement. For a deeper dive into VSCO financials, explore our premium equity research reports.
Valuation & Stock Price Analysis as of March 2025
As of March 13, 2025, the Victoria's Secret stock pricestands at $18.19, with a market cap of approximately $1,452.52 million. Our Discounted Cash Flow (DCF) model suggests downside risk with an implied share price of $8.51 (-53.2% return), while relative valuation multiples indicate upside potential, with midpoint share prices of $46.39 (+155% return) based on FCF multiples and $31.00 (+70.4% return) based on net income multiples. Analyst consensus targets a price of $22.09 (+21.4% return), reflecting a mixed but slightly optimistic outlook.
With a low price-to-sales ratio of 0.233 and trailing P/E of 8.75, VSCO appears undervalued compared to peers. Investors tracking VSCO stock analysisshould monitor execution on digital sales, international growth, and debt management.
Investment Outlook: Balancing Opportunities and Risks
Victoria's Secret & Co. presents a mixed investment profile. Strengths include its North American dominance, growing international presence, and recent financial stabilization. However, volatile performance, high leverage, and competitive pressures pose risks. At the current VSCO stock priceof $18.19, we see moderate upside potential contingent on operational improvements. For detailed VSCO earningsbreakdowns and forecasts, subscribe to our exclusive research reports.
Why Invest in VSCO? Key Takeaways
- Market Leadership: Dominant in North American intimate apparel with strong brand equity.
- Global Growth: International revenue up to 12.9% in FY2025, targeting 15-20% by 2030.
- Valuation Appeal: Undervalued relative to multiples and analyst targets.
- Risks to Watch: High debt ($4,419M) and competitive pressures from peers like Lululemon and Aerie.
Ready to make informed investment decisions? Access our full Victoria's Secret stock analysisand VSCO stock forecastby subscribing today. Stay ahead with expert insights on VSCO financialsand market trends.