VSXY

Victoria's Secret has steadied its top line — FY2026 revenue grew 5.2% to $6.55B, reversing the post-spinoff decline (from $6.79B in FY2022 down to $6.18B in FY2024). But the profit picture is still moving the wrong way: net income fell 2.4% to $161M, operating income dropped 12.6% to $271M, and diluted EPS slipped 5.9% to $1.93. Margins are thin and compressing (operating 4.1%, net 2.5%), so revenue growth is not translating into earnings — a sign of promotional pressure, cost inflation or mix shift in a competitive intimate-apparel category.

There are real positives on the balance sheet. Operating cash flow grew 17.4% to $499M against $187M of capex, cash more than doubled to $518M (+128.2%), equity rose 33.8% to $856M and retained earnings grew 46.9% to $504M as the company rebuilt its capital base. Long-term debt held flat at $971M. The financial position is materially healthier than a year ago, even if leverage remains elevated at 4.79x liabilities-to-equity.