VSXYNYSERetail-Women's Clothing StoresUS GAAP · USD

Victoria's Secret & Co.

Victoria's Secret & Co. is a U.S.-based specialty retailer of women's intimate apparel, beauty products, and related lifestyle merchandise. Its business is organized around the Victoria's Secret, PINK, and Adore Me brands, sold through company-operated stores, e-commerce sites, and international franchise, license, and wholesale channels.

Revenue6,553m USD
+5.2 %y/y
Operating profit (EBIT)271m USD
−12.6 %y/y
EBIT margin4.1%
−0.8 ppy/y
Net income161m USD
−2.4 %y/y
Free cash flow312m USD
+26.3 %y/y

Fiscal year 2026 · change from previous year

Development 2021–2026

-2,00002,0004,0006,0008,000m USD2021: 5,413 m USD2021: EBIT -101 m USD20212022: 6,785 m USD2022: EBIT 870 m USD20222023: 6,344 m USD2023: EBIT 478 m USD20232024: 6,182 m USD2024: EBIT 246 m USD20242025: 6,230 m USD2025: EBIT 310 m USD20252026: 6,553 m USD2026: EBIT 271 m USD20266,553271
RevenueOperating profit (EBIT)

Business

Share of revenue
Intimate Apparel45 %

Bras, panties, lingerie, and core intimate wear sold under Victoria's Secret, PINK, and Adore Me.

Beauty20 %

Fragrances, body care, and related beauty products sold through stores and digital channels.

Apparel and Lifestyle25 %

Sleepwear, loungewear, activewear, sport, swim, and accessories for women.

Digital Commerce7 %

Direct-to-consumer sales through branded websites, apps, and Adore Me's online model.

Franchise, License, and Wholesale3 %

Merchandise supply and royalty-based arrangements with international partners.

Customers

The company sells primarily to women and young women seeking intimate apparel, beauty, and lifestyle products across a range of price points and style preferences. Its customer base includes in-store shoppers, online direct-to-consumer buyers, and international consumers served through partner-operated stores and wholesale arrangements.

Victoria's Secret core customer

Buys intimate apparel, sleepwear, swim, and beauty products for fashion and everyday use.

PINK customer

Buys youthful apparel, loungewear, activewear, bras, panties, and accessories.

Adore Me customer

Buys digitally through a direct-to-consumer model with broader size and budget coverage.

International partner-channel customer

Buys through franchise, license, and wholesale stores in markets outside North America.

Strategy

The company is focused on using its brand portfolio, store fleet, and digital channels together to serve customers across multiple shopping occasions. It is also investing in technology, logistics, and store capital to support growth in lifestyle categories, international channels, and direct-to-consumer fulfillment.

Strengthen omnichannel retail executionShort term

The business depends on combining stores and digital channels to capture customer traffic and conversion.

Grow lifestyle and adjacent categoriesMedium term

Broader assortments increase customer frequency and reduce reliance on core intimates alone.

Improve supply chain and inventory productivityMedium term

Fast lead times, inventory freshness, and distribution reliability are central to retail execution.

Scale international and partner channelsLong term

International reach extends the brand beyond company-operated stores and broadens market access.

Geography

The company is anchored in the United States, with a large North American store base and a growing digital presence. It also operates in Canada and China directly, while serving nearly 70 countries through franchise, license, and wholesale arrangements. Distribution and sourcing are global, with merchandise flowing through U.S., European, and Mexico-based logistics nodes.

Risks

The business is exposed to shifts in consumer spending, mall traffic, and fashion preferences because it sells discretionary apparel and beauty products. It also faces operational and digital risks tied to inventory management, fulfillment, cybersecurity, global sourcing, tariffs, and international logistics. Brand protection, counterfeiting, and intellectual property enforcement are additional risks given the company's consumer recognition and product design focus.

Sorted by severity
LowMediumHighLowMediumHighImpact →Likelihood →Macroeconomic and consumer demand weakness1Direct-channel and technology disruption2Global supply chain, tariff, and logistics disruption3Inventory and fashion risk4Counterfeiting and intellectual property infringement5
Impact is the risk’s severity and likelihood how probable it is over the next few years, both assessed from the company’s reports. Numbers match the list.
  1. Macroeconomic and consumer demand weaknessImpact: HighLikelihood: Medium

    The company sells discretionary apparel and beauty products that depend on consumer confidence and spending.

    Exposure: Store and digital demand

  2. Direct-channel and technology disruptionImpact: HighLikelihood: Medium

    Online sales depend on websites, apps, fulfillment systems, and customer data security.

    Exposure: E-commerce and mobile channels

  3. Global supply chain, tariff, and logistics disruptionImpact: HighLikelihood: Medium

    Merchandise is sourced and distributed globally, creating exposure to trade policy and transport delays.

    Exposure: International sourcing and distribution

  4. Inventory and fashion riskImpact: MediumLikelihood: Medium

    Retail inventory must match seasonal demand and style trends, or markdowns increase.

    Exposure: Merchandise planning

  5. Counterfeiting and intellectual property infringementImpact: MediumLikelihood: Medium

    High brand recognition increases the risk of third-party imitation and unauthorized resale.

    Exposure: Brand equity and pricing power

Accounting

Judgemental items
Revenue recognition and shipping estimates

Direct-channel sales include estimates for merchandise shipped but not yet received by customers.

Impact: Can shift revenue timing between quarters

Returns reserve

The company estimates merchandise returns based on historical experience and recent information.

Impact: Affects net sales and gross profit

Loyalty program accounting

Points earned are deferred until redemption using stand-alone selling price estimates.

Impact: Delays revenue recognition

Gift card breakage

Unredeemed gift card revenue is recognized using a breakage-rate estimate.

Impact: Can materially affect net sales and operating income

Inventory valuation

Inventory is carried at the lower of cost or net realizable value based on demand assumptions.

Impact: Markdowns and write-downs affect merchandise margin

Publicly listed companies with a comparable business focus.

Last updated: 24/09/2026