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Victoria's Secret & Co. (VSCO) Surpasses Earnings and Revenue Estimates

  • Victoria's Secret & Co. (NYSE:VSCO) reported an EPS of -$0.27, outperforming the estimated EPS of -$0.60, showcasing the effectiveness of its Path to Potential strategy.
  • The company announced a revenue of approximately $1.47 billion, exceeding expectations and indicating a 9% year-over-year growth driven by its key segments.
  • VSCO has raised its full-year guidance, reflecting confidence in continued growth, supported by a P/E ratio of 19.25 and a price-to-sales ratio of 0.52.

Victoria's Secret & Co. (NYSE:VSCO) is a renowned retailer specializing in women's lingerie, apparel, and beauty products. Operating through its Victoria's Secret, PINK, and Beauty segments, the company caters to a diverse customer base. In a competitive market, VSCO distinguishes itself with a strong brand presence and strategic initiatives aimed at driving growth.

On December 5, 2025, VSCO reported an earnings per share (EPS) of -$0.27, surpassing the estimated EPS of -$0.60. This positive surprise reflects the company's effective execution of its Path to Potential strategy, as highlighted by CEO Hillary Super. This strategy has been pivotal in enhancing the company's performance across various segments and geographies.

The company also reported a revenue of approximately $1.47 billion, exceeding the estimated revenue of about $1.41 billion. This represents a 9% increase compared to the previous year, driven by strong sales in the Victoria's Secret, PINK, and Beauty segments. The robust performance across these segments has contributed to the company's ability to exceed the high-end of its guidance for net sales.

In light of the third quarter's success, VSCO has raised its full-year guidance for net sales, operating income, and earnings. This positive outlook is supported by the company's financial metrics, including a price-to-earnings (P/E) ratio of approximately 19.25 and a price-to-sales ratio of about 0.52. These figures indicate the market's valuation of the company's earnings and sales.

Despite a high debt-to-equity ratio of approximately 4.88, VSCO maintains a reasonable level of liquidity with a current ratio of around 1.30. This suggests that the company is well-positioned to cover its short-term liabilities while continuing to focus on its growth trajectory. The enterprise value to sales ratio of around 0.98 and an earnings yield of about 5.20% further reflect the company's financial health and potential for shareholder returns.