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Victoria’s Secret & Co. (VSCO) Surpasses Earnings Expectations Amidst IT Security Breach

  • Victoria’s Secret & Co. reported an EPS of $0.09, beating the estimated $0.04 despite a recent IT security breach.
  • Revenue reached $1.35 billion, slightly below the forecast but exceeding the company’s guidance.
  • The company’s financial stability is underscored by a current ratio of 1.05 and a debt-to-equity ratio of 4.22, indicating a strong return on investment with an earnings yield of 10.23%.

Victoria’s Secret & Co., a prominent retailer in women’s lingerie, apparel, and beauty products, continues to hold a significant position in the market despite competition. Operating under the Victoria’s Secret and PINK brands, VSCO has demonstrated resilience and financial prowess.

On June 5, 2025, VSCO announced an earnings per share (EPS) of $0.09, surpassing the consensus estimate of $0.04. This achievement is particularly noteworthy in light of a security breach in its IT systems identified on May 24, which led to a temporary shutdown of its corporate systems and US eCommerce website. Despite these hurdles, the company confirmed that its Q1 financial results remained unaffected.

The company reported revenue of $1.35 billion, slightly below the anticipated $1.41 billion but still above its own guidance of $1.3 billion to $1.33 billion. While the breach disrupted some in-store services, the majority have been restored, and efforts are ongoing to fully recover system access with minimal future operational impact.

Victoria’s Secret’s financial metrics reveal its market stance. With a price-to-earnings (P/E) ratio of approximately 9.78 and a price-to-sales ratio of 0.26, the stock is trading at a low price relative to its sales. The enterprise value to sales ratio of 0.66 reflects the company’s total valuation in comparison to its revenue. Furthermore, a current ratio of 1.05 indicates a balanced financial state, albeit with a high debt-to-equity ratio of 4.22. Nevertheless, the company’s high earnings yield of 10.23% suggests a robust return on investment, highlighting its financial stability and potential for growth.

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