- Victoria’s Secret reported preliminary first-quarter sales of $1.35 billion, surpassing its guidance.
- The company’s EPS of $0.09 exceeded Wall Street estimates despite a recent security breach.
- With a P/E ratio of approximately 9.68 and an earnings yield of 10.33%, VSCO presents a potentially undervalued investment opportunity.
Victoria’s Secret & Co. (NYSE:VSCO) is a well-known retailer specializing in lingerie, beauty products, and apparel. The company operates under the Victoria’s Secret and PINK brands, with a significant presence in both physical stores and online platforms. As a major player in the retail industry, VSCO competes with other prominent brands like Aerie and ThirdLove.
On June 5, 2025, VSCO plans to release its quarterly earnings, with Wall Street estimating an earnings per share (EPS) of $0.04 and projected revenue of $1.33 billion. However, a recent security breach in its IT systems has delayed the release of its first-quarter earnings. The breach, identified on May 24, led to a temporary shutdown of the company’s corporate systems and US eCommerce website.
Despite the breach, Victoria’s Secret reported preliminary first-quarter sales of $1.35 billion, surpassing its guidance of $1.3 billion to $1.33 billion. The company also reported an EPS of $0.09, exceeding Wall Street estimates and at the high end of its guidance range. This demonstrates the company’s resilience in maintaining strong financial performance despite operational disruptions.
Victoria’s Secret’s financial metrics provide insight into its market valuation. With a price-to-earnings (P/E) ratio of approximately 9.68, the market values the company’s earnings favorably. The price-to-sales ratio of about 0.26 suggests the stock is valued at 26 cents for every dollar of sales, indicating a potentially undervalued stock.
The company’s enterprise value to sales ratio is approximately 0.66, reflecting its total valuation relative to sales. The enterprise value to operating cash flow ratio is around 9.62, showing how the company’s valuation compares to its cash flow from operations. With an earnings yield of 10.33%, VSCO offers a return on investment based on its earnings, appealing to investors.
