VSXY Victoria's Secret & Co.

Overview and Growth

In fiscal 2025, Victoria's Secret & Co. recorded $6.55B of revenue, net income of $161.00M, and an operating cash inflow of $499.00M. The $6.55B revenue base provides substantial context for the company’s earnings, cash generation, and capital requirements. Compared with $6.23B in fiscal 2024, revenue recorded a 5.2% year-over-year increase. Diluted earnings per share were $1.93, translating the period’s attributable earnings into the amount reported for each diluted share. Diluted EPS decreased by 5.9% from $2.05 in fiscal 2024, showing how the earnings change reached shareholders on a per-share basis.

Profitability

The first profit layer was $2.38B of gross profit, the amount available after reported direct revenue costs to absorb operating expenses. The gross-profit relationship equaled 36.4% of revenue, quantifying the portion retained before operating expenses were recognized. Operating income was $271.00M, the earnings remaining from reported operations after the company’s recognized operating cost structure. Operating margin measured 4.1%, showing the portion of revenue preserved after the full set of operating costs. Net income came to $161.00M, completing the progression from revenue through gross and operating profitability to the final reported result. Measured against reported revenue, net income produced a 2.5% margin after operating costs and the remaining recognized items. Before income taxes, the company reported $208.00M of earnings, providing a bridge between the operating result and final net income. Pretax income represented 3.2% of revenue, placing earnings before tax in the context of the company’s operating scale. The company recognized $19.00M of income tax for the period, completing the transition from pretax income to net income. The effective relationship between income tax and positive pretax income was 9.1%, without assuming a statutory-rate comparison.

Liquidity and Capital Structure

Total assets were $5.01B, supported by $4.10B of liabilities and $910.00M of shareholder equity. At period end, current assets of $1.88B compared with current liabilities of $1.51B, defining the company’s short-term resource position. The current ratio was 1.25x, with current assets exceeding current liabilities and providing a short-term liquidity cushion. Cash and equivalents totaled $518.00M, identifying the most liquid reported component available within the broader current-asset balance. Cash and equivalents represented 34.4% of current liabilities, showing the portion of near-term obligations matched by reported cash alone. The company carried $975.00M of total debt at period end, which frames its leverage and debt-service burden. Debt equaled 1.07x of book equity, describing the relative scale of borrowing and shareholder capital. Relative to total assets, debt measured 19.4%, showing how much of the asset base was matched by borrowing. Relative to total assets, liabilities measured 81.8%, complementing the separate equity-based view of the company’s capital structure. The cash-to-assets relationship was 10.3%, comparing reported cash and equivalents with the full positive asset balance.

Cash Flow and Earnings Quality

Operating activities produced a cash inflow of $499.00M, giving the cash-flow counterpart to the accrual-based profit measures reported for the year. The operating-cash-flow-to-net-income relationship was 3.1x, comparing cash generated by operations with the bottom-line earnings result. Capital expenditures used $187.00M, identifying the reported investment outflow deducted from operating cash flow in the free-cash-flow calculation. Capital expenditures represented 37.5% of operating cash flow, leaving the remainder available as free cash flow. After capital spending, free cash flow was $312.00M, leaving cash available for debt reduction, shareholder returns, or further investment. Relative to revenue, free cash flow equaled 4.8%, showing how much sales converted into cash after investment. Free cash flow equaled 6.2% of total assets, relating post-investment cash generation to the company’s resource base.

Based on the annual report for the fiscal year ending Jan 31, 2026. Analysis generated Oct 26, 2026.