| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 61 | 21.1x | 17.3x | Around median | |
Growth | 72 | 10.3% | 7.1% | Top tier | |
Quality | 92 | 12.5% | 4.5% | Top tier | |
Safety | 62 | 3.1x | 2.6x | Around median | |
Capital Return | 70 | 0.09% | 0.06% | Top tier | |
Momentum | 96 | 169.6% | -1.6% | Top tier | |
Sentiment | 38 | 8 | 3 | Bottom tier |
The floor: what the company is worth if growth stopped today
63% of today's price is what a buyer pays for growth that has not happened yet.
10-year US Treasury yield 5.00% as of 2026-10-23. Estimates computed from company data and analyst targets, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Victoria's Secret & Company operates the Victoria's Secret and PINK brands, alongside a beauty business that management describes as a key pillar, and generates revenue from the sale of bras, panties, sleepwear, apparel, and fragrance and mist products. The company reaches customers through stores, digital channels, and international operations, including sales to franchise and wholesale partners. The Path to Potential strategy aims to build Victoria's Secret and PINK as distinct growth brands supported by the beauty business.
In fiscal Q2 2026 (ends 2026-08), revenue was $1.6 billion, up 10.4% year over year from $1.5 billion in fiscal Q2 2025 (ends 2025-08). Net income was $183.0 million and diluted EPS was 2.18, while gross margin reached 47.1% and operating margin reached 16.0%. The company also generated $402.0 million in operating cash flow during the quarter.
Growth was broad-based across Victoria's Secret, PINK, beauty, channels, and international operations, but the mix varied by business: bras grew in the mid-teens and contributed about half of Victoria's Secret's growth, PINK grew in the high single digits, while beauty grew in the mid-single digits and recorded its twelfth consecutive quarter of sales growth. Full-price selling increased in the low teens companywide and in the high single digits within beauty, demonstrating that the improvement in results did not depend on higher volume alone. The customer base increased in the mid-single digits, marking a fourth consecutive quarter of growth, supported by new customer acquisition and improved retention.
Q2 FY2026 (2026-08)
Last 12 months to 2026-08-01
When: Fiscal Q3 2026
Gross margin expansion of 1.5 percentage points
Maintaining unit growth of at least 5%
When: 2026-12-04
Maintaining an operating margin of 16.0%
The discounted cash flow model estimates value at $91 within a range of $79 to $107, measuring the value of expected cash flows using a 14.2% discount rate and following analyst earnings estimates. The median analyst target is $90 within a range of $73 to $101, pricing in expected growth but serving as guidance due to low confidence and a sample limited to two analysts; the average consensus is $86.8 with a Buy recommendation. The industry-multiple value is $61 within a range of $46 to $94, pricing the company like 22 peers based on next year's earnings and a median multiple of 12.3, while the no-growth value is $35 and represents what remains if current after-tax operating profit stays constant forever. The discounted cash flow model and analyst targets converge near $90 because both incorporate forward expectations, while the industry-multiple value and no-growth value decline as less growth is factored in; analyst targets are optimistic by nature, while the discounted cash flow model is conservative by nature.
Figures in the text are as of 2026-09-27; the live price is shown at the top of the page.
In fiscal Q2 2026 (ends 2026-08), revenue increased 10.4% year over year to $1.6 billion. Gross margin expanded by 11.5 percentage points to 47.1%, and operating margin expanded by 13.1 percentage points to 16.0%. As a result, net income was $183.0 million and diluted EPS was 2.18, compared with net income of $16.0 million and EPS of 0.2 in the comparable quarter.
Bras were the leading driver in fiscal Q2 2026 (ends 2026-08), growing in the mid-teens and contributing about half of Victoria's Secret's growth. However, PINK grew in the high single digits, and its apparel business delivered eight consecutive quarters of growth, while beauty recorded its twelfth consecutive quarter of sales growth. Supporting products included Very Sexy Envy, FlexFactor Balconette, and Marshmallow in four designs, along with six additional beauty scents.
Automated analysis for informational purposes only — not investment advice.
In fiscal Q2 2026 (ends 2026-08), the company held $522.0 million in cash and investments against total debt of $975.0 million. During the last 12 months through 2026-08-01, operating cash flow was $758.0 million and free cash flow was $554.0 million. Operating cash flow equaled 201% of net income of $378.0 million, but debt remaining above cash is still a significant financial constraint.
During the 90 days through 2026-09-27, four sales by one insider were recorded with a total value of $97.0 million, and no purchases were recorded. Sales worth $0 were executed under 10b5-1 plans, while sales outside those plans totaled $97.0 million. The seller owned more than 10% of the company, and these figures describe the recorded transactions without inferring a direction for the stock.
The next expected earnings release date is 2026-12-04, and it will cover fiscal Q3 2026 performance. Gross margin expansion of approximately 1.5 percentage points will be a direct test of whether the benefits from full-price selling and tariff mitigation are continuing. Unit growth in the mid-to-high single digits and an increase in average unit retail in the low single digits will also show whether growth combines volume and pricing.