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Victoria's Secret & logo

Victoria's Secret &

VSCO
57
Apparel - Retail · Consumer Cyclical
Price
$81.47
-0.91 (-1.10%)
Market Cap
$6.47B
Winston Score
57
Winston is curious
A decent business — some strong pillars, some weaker.

Share count falling — buybacks

7.3% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 90.0M (2022) → 83.4M (2026)

Victoria's Secret & Co. sells women's lingerie, sleepwear, and beauty products. Its main brands are Victoria's Secret and PINK, which targets younger women and college-aged shoppers. The company operates hundreds of retail stores across the United States and also sells through its website.

The company makes money primarily through direct product sales in its stores and online. It operates mainly in North America, with a smaller international presence through franchise partners in other countries. Victoria's Secret was once the dominant name in women's lingerie, but it has faced growing competition from newer brands like Savage X Fenty and ThirdLove that have taken market share by appealing to a broader range of body types and styles. The key challenge ahead is whether the company can rebuild its brand relevance and grow sales after years of declining revenue, while managing costs in a competitive retail environment.

Winston Score History

Politician Trades

2 trades / 12mo

1 Congressional buy and 1 sell on VSCO in the last 12 months.

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Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+7.8% YoY

YoY Growth Rate

Slow revenue growth

EPS Growth

-8.2% YoY

YoY Growth Rate

Earnings declining

R&D Spend

$0/ year

0.0% of revenue

Below sector average (4%)

Research and development spending

Insider Activity

13.0%ownership

Insiders own a meaningful stake in the company

Cash Position

Cash flow positive

$518M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Growth context

Victoria's Secret & is growing revenue at 8% year-over-year. The Winston Score measures business quality today — these growth metrics show what could matter tomorrow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

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Quality

Gross Margin
37.7%
Modest — 37.7% gross margin
Operating Margin
10.1%
Modest — 10.1% operating margin
ROCE
10.8%
Below par — 10.8% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales YoY
+17.9%
Fast-growing sales (17.9% YoY)
EPS YoY
+114.8%
Earnings growing fast (114.8% YoY)

Earnings growing 25%+ a year. The compounder zone.

EPS Consistency
4/8 quarters
Earnings inconsistent quarter-to-quarter

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Cash Flow

Cash Conversion
371%
Turns 371% of profit into real cash
FCF Margin
15.8%
Converts sales into free cash efficiently (15.8%)

FCF margin between 10% and 20%. Every $100 in sales becomes $10 to $20 in real cash.

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Stability

Debt / Equity
1.48
Elevated debt (1.48)
Interest Cover
7.15x
Adequate interest coverage (7.1x)

Interest coverage between 3 and 8. Profits cover interest several times over.

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Valuation

P/E Ratio (TTM)
19.3x
Fair value — P/E 19.3

P/E in the normal range. Price is roughly $15 for every $1 of yearly profit.

P/E vs Forward
+4.0
GROWING
Earnings expected to grow meaningfully — cheaper on forward P/E (19.3 → 15.3)

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Dividends

Not applicable for this business.
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