Operating income remains highly volatile, swinging from a $268 million profit in 2024Q4 to a $19 million loss in 2025Q3, reflecting limited ability to scale profitability.
Victoria's Secret & Company (VSXY) annual income statement — 7-year revenue, gross profit & net income history
| Metric | TTM | Jan'26 | Jan'25 | Jan'24 | Jan'23 | Jan'22 | Jan'21 | Jan'20 |
|---|
| Sales/Revenue | 6.91B | 6.55B | 6.23B | 6.18B | 6.34B | 6.79B | 5.41B | 7.51B |
| Revenue Growth % | - | 5.18% | 0.78% | -2.55% | - | 25.35% | -27.91% | - |
| Cost of Goods Sold | 4.17B | 4.17B | 3.95B | 3.94B | 4.09B | 4.03B | 3.84B | 5.45B |
| COGS % of Revenue | - | 63.62% | 63.34% | 63.73% | 64.41% | 59.32% | 70.98% | 72.53% |
| Gross Profit | 2.74B | 2.38B | 2.28B | 2.24B | 2.26B | 2.76B | 1.57B | 2.06B |
| Gross Margin % | 39.62% | 36.38% | 36.66% | 36.27% | 35.59% | 40.68% | 29.02% | 27.47% |
| Gross Profit Growth % | - | 4.38% | 1.87% | -0.71% | - | 75.68% | -23.85% | - |
| Operating Expenses | 2.19B | 2.11B | 1.97B | 2B | 1.78B | 1.89B | 1.67B | 2.23B |
| OpEx % of Revenue | - | 32.24% | 31.69% | 32.29% | 28.06% | 27.86% | 30.89% | 29.76% |
| Selling, General & Admin | 2.19B | 2.11B | 1.97B | 2B | 1.78B | 1.89B | 1.67B | 2.23B |
| SG&A % of Revenue | - | 32.24% | 31.69% | 32.29% | 28.06% | 27.86% | 30.89% | 29.76% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | 0 | 0 | 0 | 0 | 501K | 0 | 0 |
| Operating Income | 551.88M | 271M | 310M | 246M | 478M | 870M | -101M | -892M |
| Operating Margin % | 7.99% | 4.14% | 4.98% | 3.98% | 7.53% | 12.82% | -1.87% | -11.88% |
| Operating Income Growth % | - | -12.58% | 26.02% | -48.54% | - | 961.39% | 88.68% | - |
| EBITDA | 769.88M | 509M | 568M | 530M | 752M | 1.17B | 225M | -481M |
| EBITDA Margin % | 11.14% | 7.77% | 9.12% | 8.57% | 11.85% | 17.29% | 4.16% | -6.41% |
| EBITDA Growth % | - | -10.39% | 7.17% | -29.52% | - | 421.33% | 146.78% | - |
| D&A (Non-Cash Add-back) | 218M | 238M | 258M | 284M | 274M | 303M | 326M | 411M |
| EBIT | 552.2M | 278M | 307M | 246M | 477M | 870.12M | -100M | -891M |
| Net Interest Income | -64.6M | -70M | -86M | -99M | -60M | -27M | -6M | -8M |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 64.6M | 70M | 86M | 99M | 60M | 27M | 6M | 8M |
| Other Income/Expense | -61.68M | -63M | -89M | -99M | -61M | -27M | -5M | -7M |
| Pretax Income | 490.21M | 208M | 221M | 147M | 417M | 843.12M | -106M | -899M |
| Pretax Margin % | 7.09% | 3.17% | 3.55% | 2.38% | 6.57% | 12.43% | -1.96% | -11.97% |
| Income Tax | 76.15M | 19M | 52M | 31M | 79M | 196.74M | -34M | -2M |
| Effective Tax Rate % | 15.54% | 9.13% | 23.53% | 21.09% | 18.94% | 23.33% | 32.08% | 0.22% |
| Net Income | 377.74M | 161M | 165M | 109M | 348M | 646M | -72M | -897M |
| Net Margin % | 5.47% | 2.46% | 2.65% | 1.76% | 5.49% | 9.52% | -1.33% | -11.95% |
| Net Income Growth % | - | -2.42% | 51.38% | -68.68% | - | 997.22% | 91.97% | - |
| Net Income (Continuing) | 414.05M | 189M | 169M | 116M | 338M | 646M | -72M | -897M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 61M | 54M | 24M | 21M | 18M | 0 | 0 | 2M |
| EPS (Diluted) | 4.49 | 1.93 | 2.05 | 1.39 | 4.14 | 7.18 | -0.79 | -9.70 |
| EPS Growth % | - | -5.85% | 47.48% | -66.43% | - | 1008.86% | 91.86% | - |
| EPS (Basic) | - | 2.00 | 2.05 | 1.39 | 4.35 | 7.60 | -0.79 | -9.70 |
| Diluted Shares Outstanding | 84.15M | 83M | 80.73M | 78.56M | 84.07M | 90M | 91.58M | 91.58M |
| Basic Shares Outstanding | 84.15M | 80M | 80.73M | 78.55M | 80M | 85M | 91.58M | 92.51M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - |
Quick answers to the most common questions about buying VSXY stock.
For fiscal year 2025, Victoria's Secret & Company (VSXY) reported total revenue of $6.55B. This represents a 12.7% decline compared to $7.51B in 2019.
Victoria's Secret & Company (VSXY) is profitable, generating $161.0M in net income for the fiscal year ending 2025 with a net profit margin of 2.5%.
Victoria's Secret & Company (VSXY) reported an operating income of $271.0M, resulting in an operating profit margin of 4.1%. This margin reflects the operational efficiency of the business before interest and taxes.
Victoria's Secret & Company (VSXY) generated $2.38B in gross profit for the year, representing a gross profit margin of 36.4%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
High Debt Leverage Sensitivity
Metrics are mathematically derived from official filings.
Revenue Growth Remains Highly Volatile
According to recent financial filings, VSCO's revenue growth has exhibited significant volatility, peaking at 15.3% in 2026Q1 after periods of stagnation, which suggests that the company's top-line performance remains heavily dependent on seasonal cycles and the success of its ongoing brand repositioning efforts within the competitive retail landscape.
The recent acceleration in revenue growth appears to be a departure from the previous trend of flat or negative growth, potentially indicating that recent marketing pivots are beginning to resonate. However, investors should monitor whether this growth is sustainable or merely a result of aggressive promotional activity intended to clear inventory.
Structural Margin Pressure Persists Daily
As reported in quarterly income statements, VSCO's gross margins have fluctuated within a narrow band of 34.7% to 39.7%, reflecting a structural reliance on promotional discounting to maintain volume in a highly discretionary and competitive intimate apparel market that continues to challenge the company's pricing power.
The inability to consistently expand gross margins suggests that the brand's prestige positioning is being undermined by the necessity of frequent markdowns. This margin profile appears to be a direct consequence of the high fixed-cost burden associated with maintaining a massive physical retail footprint in a shifting consumer environment.
Operating Leverage Constrained by Overhead
Based on the provided income statement data, VSCO's operating income remains highly sensitive to SG&A fluctuations, as evidenced by the swing from a $268 million profit in 2024Q4 to a $19 million loss in 2025Q3, highlighting the company's limited ability to scale profitability during periods of lower revenue.
The lack of consistent operating leverage suggests that the company's cost structure is heavily weighted toward fixed expenses that do not easily contract with revenue declines. This operational rigidity warrants further investigation into whether the current store rationalization strategy is sufficient to improve long-term profitability.
Debt Burden Risks Future Viability
Data from recent financial disclosures indicates that VSCO maintains a debt-to-equity ratio of 3.13, which, when combined with inconsistent net income, suggests that the company's capital structure may be increasingly vulnerable to interest rate volatility and potential liquidity constraints in the event of a sustained demand downturn.
While management has focused on digital transformation through the Adore Me acquisition, the high leverage profile limits the company's flexibility to navigate further market share erosion. Investors should monitor whether the current cash flow generation is sufficient to service these obligations without necessitating further dilutive financing or asset divestitures.