Financial Analysis
Filing-based analysis. Market pricing is not included. Fundamentals from SEC filings; economic data from FRED and the BLS. About our data
Filing evidence summary
Mixed evidenceCoverage 5/5 core metricsFlagged areas: Solvency & liquidity.
Backward-looking filed evidence under visible rules - not a rating, forecast or investment advice. Missing data is never scored.
Evidence signals
- 1 filing risk check flagged
Flagged areas: Solvency & liquidity.
Why this surfaced
The full financial analysis shows each value, threshold, and sector limitation.
- Operating margin was stable
Operating margin changed -0.8 percentage points from the prior annual period.
Why this surfaced
Direction threshold: more than +1 percentage point constructive; below -1 point caution. Period end 2026-01-31.
- Revenue expanded
Latest reported annual revenue changed +5.2% from the prior reported annual observation.
Why this surfaced
Direction threshold: above +2% constructive; below -2% caution; otherwise monitor. This is not labeled one-year growth when filing periods have a gap. Period end 2026-01-31.
- Free cash flow was positive
Latest reported free cash flow was $312M.
Why this surfaced
Free cash flow = operating cash flow minus capital expenditures; positive is supporting evidence, not a valuation conclusion. Period end 2026-01-31.
Core trend metrics
Hover a tile for its exact definition; the Statements tab carries per-cell filing citations.
Where to look next
Risk checks
- Solvency & liquidity
Financial movement
- Cash→ flat
- Long-term debt→ flat
- Inventory→ flat
- Receivables→ flat
- Current assets→ flat
Source & freshness
- Source
- SEC EDGAR XBRL
- Fetched
- 2026-09-06
- Latest period end
- 2026-01-31
- Filings
- EDGAR ↗
Reported segment mix
figures as filed · share of the filed sum · change vs the prior period in the same filing- United States$5.39B82.3%+2.6% yoy
- Outside the United States$1.16B17.7%+18.8% yoy
Members sum to the consolidated $6.55B for this period.
- Reportable Segment$1.56B100.0%+15.3% yoy
Change is against the same quarter a year earlier, as reported in the same 10-Q.
Source: SEC DERA Financial Statement and Notes data sets. Dimensional XBRL facts on the business-segment, product/service and geographic axes; the engine keeps the accession of every figure. Descriptive and educational, not advice.
Peer percentiles
latest fiscal year ending 2026-01-31 · among 4,121 US-listed filers · 481 in Consumer| Metric | Value | vs all filers | vs sector |
|---|---|---|---|
Revenue latest fiscal-year revenue as filed | $6.6B | 84thof 3,301 top third | 71stof 463 top third |
Revenue growth latest fiscal-year revenue vs the prior fiscal year | 5.2% | 47thof 3,135 middle third | 62ndof 449 middle third |
Gross margin gross profit ÷ revenue | 36.4% | 47thof 1,603 middle third | 56thof 328 middle third |
Operating margin operating income ÷ revenue | 4.1% | 53rdof 2,819 middle third | 50thof 432 middle third |
Net margin net income ÷ revenue | 2.5% | 50thof 3,263 middle third | 50thof 459 middle third |
Free-cash-flow margin (operating cash flow − |capex|) ÷ revenue | 4.8% | 50thof 2,679 middle third | 57thof 417 middle third |
Return on equity net income ÷ stockholders' equity (positive equity only) | 18.8% | 85thof 3,577 top third | 76thof 410 top third |
Stock comp ÷ revenue stock-based compensation ÷ revenue · lower is ranked higher | 0.8% | 73rdof 2,895 top third | 42ndof 414 middle third |
Days sales outstanding receivables ÷ revenue × 365 · lower is ranked higher | 10 days | 89thof 2,398 top third | 71stof 382 top third |
Net debt ÷ operating cash flow net debt ÷ operating cash flow (OCF > 0) · lower is ranked higher | 0.9× | 66thof 1,547 middle third | 66thof 242 middle third |
Cash conversion operating cash flow ÷ net income (net income > 0) | 3.1× | 82ndof 2,181 top third | 80thof 297 top third |
Cash-flow accrual ratio (net income − operating cash flow) ÷ average total assets · lower is ranked higher | -7.1% | 63rdof 3,545 middle third | 65thof 413 middle third |
Balance-sheet accrual ratio change in net operating assets ÷ average net operating assets · lower is ranked higher | -3.4% | 66thof 3,029 middle third | 63rdof 323 middle third |
Each filer's latest fiscal year as stored by the nightly crawl; fiscal year ends differ across the universe. A metric ranks only filers for which it is computable from filed facts. Ties split; a rank reads "better than N% of filers" in the metric's own direction. Descriptive and educational, not a rating.
Earnings quality
latest fiscal year ending 2026-01-31 · accruals and cash conversion as filedPer fiscal year from filed facts: cash conversion = operating cash flow / net income (net income > 0); cash-flow accrual ratio = (net income - operating cash flow) / average total assets; balance-sheet accrual ratio = change in net operating assets / average net operating assets, NOA = (assets - cash) - (liabilities - debt). Descriptive; a missing input yields a missing ratio. High accrual ratios and cash conversion well below one are the measures the accruals literature associates with less persistent earnings; they are screens to read the cash-flow statement with, not conclusions. The per-year series is part of Pro risk analysis.
Point-in-time ledger
first-reported vs latest filing · periods since 2020-01-01 · 2 changed periods| Line item | Period | First reported | Latest filing | Change | Filings |
|---|---|---|---|---|---|
| Long-term debt LongTermDebtNoncurrent | balance at 2021-07-31 | $592M 10-Q 2021-09-10 | $689M 10-Q 2022-09-08 | +16.4% | first · latest |
| Long-term debt LongTermDebtNoncurrent | balance at 2021-01-30 | $0 10-Q 2021-09-10 | $97M 10-K 2022-03-18 | - | first · latest · 3 filings carry it |
First filing reporting each period vs the latest filing carrying it (10-K and 10-Q only, periods since 2020, the extractor's winning tag per concept); a change under 0.5% is treated as rounding. A change can be a restatement, a reclassification or a re-tagging in a later comparative column; the two filings are linked so the reader can see which. Descriptive, not a verdict.
Notes by disclosure type
debt, leases, revenue, segments, contingencies, taxes and more · the filer's own wordsCommitments and contingencies · 1,125 characters as filed
Commitments and Contingencies The Company is subject to various claims and contingencies related to lawsuits, taxes, insurance and other matters arising out of the normal course of business. Actions filed against the Company from time to time include commercial, tort, intellectual property, customer, employment, data privacy and other claims, including purported class action lawsuits. Management believes that the ultimate liability arising from such claims and contingencies, if any, is not likely to have a material adverse effect on the Companys results of operations, financial condition or cash flows. In April 2023, the Company was named as a defendant in a putative class action lawsuit filed in the United States District Court for the Southern District of New York alleging that Victorias Secret Stores employs manual workers in New York state and failed to pay hourly wages within seven calendar days after the end of the week in which those wages were earned, rather paying wages on a bi-weekly basis. The lawsuit has been settled and during the first quarter of 2026, the Company paid the settlement in full. …
CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing
Revenue disaggregation · 699 characters as filed
The following table provides a disaggregation of Net Sales for the first quarter of 2026 and 2025: First Quarter 2026 2025 (in millions) Stores North America $ 803 $ 721 Direct 469 433 International (a) 288 199 Total Net Sales $ 1,560 $ 1,353 _______________ (a) Results include consolidated joint venture sales in China, royalties associated with franchise partners sales, wholesale sales, and beginning in the third quarter of 2025 direct sales in the European Union. Prior to the third quarter of 2025, direct sales in the European Union are reported in the Direct channel. Direct sales in the European Union reported in the International channel were $17 million in the first quarter of 2026. …
DisaggregationOfRevenueTableTextBlock · excerpt; the full note is in the filing
Fair value · 2,164 characters as filed
Fair Value of Financial Instruments Cash and Cash Equivalents include cash on hand, deposits with financial institutions and highly liquid investments with original maturities of 90 days or less. The Companys Cash and Cash Equivalents are considered Level 1 fair value measurements as they are valued using unadjusted quoted prices in active markets for identical assets. The following table provides a summary of the principal value and estimated fair value of the Companys outstanding debt as of May 2, 2026, January 31, 2026 and May 3, 2025: May 2, 2026 January 31, 2026 May 3, 2025 (in millions) Principal Value $ 982 $ 983 $ 986 Fair Value, Estimated (a) 967 971 912 ________________ (a) The estimated fair value of the Companys publicly traded debt is based on reported transaction prices which are considered Level 2 inputs in accordance with ASC 820, Fair Value Measurement . The estimates presented are not necessarily indicative of the amounts that the Company could realize in a current market exchange. Management believes that the carrying values of accounts receivable, accounts payable and accrued expenses approximate fair value because of their short maturity. Management further believes the principal value of the outstanding debt under the ABL Facility approximates its fair value as of May 2, 2026, January 31, 2026 and May 3, 2025 based on the terms of the borrowings from the ABL Facility. Recurring Fair Value Measurements The following table provides a summary of the Company …
FairValueDisclosuresTextBlock · excerpt; the full note is in the filing
Income taxes · 861 characters as filed
Income Taxes The provision for income taxes is based on the current estimate of the annual effective tax rate and is adjusted as necessary for quarterly events. For the first quarter of 2026, the Companys effective tax rate was 11.7% compared to 50.9% in the first quarter of 2025. The first quarter of 2026 rate differed from the Companys combined estimated federal and state statutory rate primarily due to the recognition of excess tax benefits related to share-based compensation awards that vested in the period. The first quarter of 2025 rate differed from the Companys combined estimated federal and state statutory rate primarily due to additional tax expense from share-based compensation awards that vested in the period. The Company paid income taxes in the amount of $8 million and $5 million for the first quarter of 2026 and 2025, respectively. …
IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing
Long-term debt · 6,477 characters as filed
Long-term Debt and Borrowing Facilities The following table provides the Company s outstanding Long-term Debt balance, net of unamortized debt issuance costs and discounts and any current portion, as of May 2, 2026, January 31, 2026 and May 3, 2025: May 2, 2026 January 31, 2026 May 3, 2025 (in millions) Senior Secured Debt with Subsidiary Guarantee $382 million Term Loan due August 2028 (Term Loan Facility) $ 378 $ 379 $ 381 Asset-based Revolving Credit Facility due May 2030 (ABL Facility) 15 105 Total Senior Secured Debt with Subsidiary Guarantee 393 379 486 Senior Debt with Subsidiary Guarantee $600 million, 4.625% Fixed Interest Rate Notes due July 2029 (2029 Notes) 597 596 596 Total Senior Debt with Subsidiary Guarantee 597 596 596 Total 990 975 1,082 Current Debt (4) (4) (4) Total Long-term Debt, Net of Current Portion $ 986 $ 971 $ 1,078 Cash paid for interest was $6 million and $8 million for the first quarter of 2026 and 2025, respectively. Issuance of 2029 Notes In July 2021, the Company issued $600 million of 4.625% notes due in July 2029 in a transaction exempt from registration under the Securities Act of 1933, as amended. The obligation to pay principal and interest on the 2029 Notes is jointly and severally guaranteed on a full and unconditional basis by certain of the Companys wholly-owned subsidiaries. The issuance costs are being amortized through the maturity date and are included within Long-term Debt on the Consolidated Balance Sheets. Credit Facilities Th …
LongTermDebtTextBlock · excerpt; the full note is in the filing
New accounting pronouncements · 1,880 characters as filed
Recently Issued Accounting Pronouncements The Company did not adopt any new accounting standards during the first quarter of 2026 that had a material impact on the Companys results of operations, financial position or cash flows. Disaggregation of Income Statement Expenses In November 2024, the Financial Accounting Standards Board (FASB) issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses , which is intended to improve expense disclosures, primarily by requiring disclosure of disaggregated information about certain income statement expense line items on an annual and interim basis. This standard will be effective for annual reporting periods beginning in fiscal year 2027 and for interim periods beginning in fiscal year 2028, with early adoption permitted. The updates required by this standard should be applied prospectively, but retrospective application is permitted. The Company is currently evaluating the impact of adopting this standard on its disclosures. Internal-Use Software In September 2025, the FASB issued Accounting Standards Update (ASU) 2025-06, Targeted Improvements to the Accounting for Internal-Use Software , which is intended to modernize the accounting for internal-use software costs, primarily by removing references to project stages from capitalization criteria and further clarifying the threshold entities apply to begin capitalizing costs. …
NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing
Restructuring · 1,374 characters as filed
Restructuring Activities In the first quarter of 2026, the Company implemented certain strategic leadership appointments and restructuring actions designed to further advance its Path to Potential strategy by continuing to restructure its executive leadership team and organizational structure. Pre-tax severance and other expenses related to these activities of $5 million are included in the first quarter of 2026 Consolidated Statement of Income, of which $3 million are included in General, Administrative and Store Operating Expenses and $2 million are included in Costs of Goods Sold, Buying and Occupancy. In the first quarter and throughout fiscal year 2025, the Company implemented a series of strategic leadership appointments and restructuring actions designed to accelerate growth and continue to restructure its executive leadership team and organizational structure. The Company incurred severance, relocation and other expenses related to these activities in the first quarter and throughout fiscal year 2025. In the first quarter of 2026, the Company made payments of $5 million related to severance and related costs associated with these restructuring actions implemented in fiscal years 2026 and 2025. Liabilities, after accrual adjustments, related to these restructuring actions of $10 million are included in the May 2, 2026 Consolidated Balance Sheet.
RestructuringAndRelatedActivitiesDisclosureTextBlock
Revenue recognition · 2,664 characters as filed
Revenue Recognition Accounts receivable, net from revenue-generating activities were $141 million as of May 2, 2026, $137 million as of January 31, 2026 and $120 million as of May 3, 2025. Accounts receivable primarily relate to amounts due from the Companys franchise, license and wholesale partners. Under these arrangements, payment terms are typically 60 to 90 days. The Company records deferred revenue when cash payments are received in advance of transfer of control of goods or services. Deferred revenue primarily relates to gift cards, loyalty and credit card programs and direct channel shipments, which are all impacted by seasonal and holiday-related sales patterns. Deferred revenue was $226 million as of May 2, 2026, $257 million as of January 31, 2026 and $254 million as of May 3, 2025. The Company recognized $73 million as revenue in the first quarter of 2026 from amounts recorded as deferred revenue at the beginning of the fiscal year. As of May 2, 2026, the Company recorded deferred revenue of $218 million within Accrued Expenses and Other, and $8 million within Other Long-term Liabilities on the Consolidated Balance Sheet. The following table provides a disaggregation of Net Sales for the first quarter of 2026 and 2025: First Quarter 2026 2025 (in millions) Stores North America $ 803 $ 721 Direct 469 433 International (a) 288 199 Total Net Sales $ 1,560 $ 1,353 _______________ (a) Results include consolidated joint venture sales in China, royalties associated with …
RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing
Segment reporting · 2,756 characters as filed
Segment Information The Companys segments are based on the financial information the Companys Chief Operating Decision Maker (CODM), who is the Chief Executive Officer, uses to evaluate performance and allocate resources. The Company has one reportable segment. The CODM assesses performance of the Companys single reportable segment and decides how to allocate resources based on Net Income (Loss) Attributable to Victorias Secret & Co. as reported on the Consolidated Statements of Income (Loss). The following table provides the Companys segment information for the first quarter of 2026 and 2025: First Quarter 2026 2025 (in millions) Net Sales $ 1,560 $ 1,353 Costs of Goods Sold (634) (558) Buying and Occupancy Expenses (341) (321) General, Administrative and Store Operating Expenses (a) (403) (356) Advertising and Marketing Expenses (106) (98) Operating Income $ 76 $ 20 Interest Expense (15) (17) Provision for Income Taxes (7) (3) Other Items (b) (6) (2) Net Income (Loss) Attributable to Victorias Secret & Co. $ 48 $ (2) _______________ (a) Excludes Advertising and Marketing Expenses. (b) Other Items includes net income attributable to noncontrolling interest, interest income and other miscellaneous expense items. The Company derives revenue primarily from its sale of womens intimate and other apparel and beauty products. For additional information on other sources of revenue, see Note 2, Revenue Recognition. The following table provides Net Sales by geographic location …
SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing
Stockholders' equity · 3,035 characters as filed
Net Income (Loss) Per Share and Shareholders Equity Net Income (Loss) Per Share Net income (loss) per basic share is computed based on the weighted-average number of common shares outstanding during the period. Net income (loss) per diluted share includes the weighted-average effect of dilutive restricted stock units, performance share units and options (collectively, Dilutive Awards) on the weighted-average shares outstanding. The following table provides the weighted-average shares utilized for the calculation of basic and diluted net income (loss) per share for the first quarter of 2026 and 2025: First Quarter 2026 2025 (in millions) Common Shares 81 79 Treasury Shares Basic Shares 81 79 Effect of Dilutive Awards (a) 4 Diluted Shares 85 79 Anti-dilutive Awards (a) 6 _______________ (a) For the first quarter of 2026, shares underlying certain restricted stock units, performance share units and options were excluded from the calculation of net income per diluted share because their inclusion would have been anti-dilutive. For the first quarter of 2025, shares underlying outstanding restricted stock units, performance share units and options were excluded from the calculation of net loss per diluted share as a result of the Companys net loss for the period. Shareholders Equity March 2024 Share Repurchase Program In March 2024, the Board of Directors of the Company (the Board) approved a share repurchase program (March 2024 Share Repurchase Program), authorizing the repurchase …
StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing
Subsequent events · 297 characters as filed
Subsequent EventsSubsequent to the end of the first quarter of 2026, BBRC International PTE Limited (BBRC) and its Chairman Brett Blundy initiated a proxy contest seeking to withhold votes against directors nominated for re-election at the Companys upcoming 2026 Annual Meeting of Shareholders. …
SubsequentEventsTextBlock · excerpt; the full note is in the filing
Source: SEC DERA Financial Statement and Notes data sets (txt.tsv), excerpts of the filer's own note text; the full note is in the linked filing. Excerpts are the first part of each note exactly as tagged in the filing; open the filing for the full text and the tables. Descriptive and educational, not advice.
Fundamentals from SEC EDGAR. Scores, the DCF, and every model shown are educational analysis, not investment advice or price predictions.