Victoria's Secret & Co (VSCO)
Inventory turnover
| Jan 31, 2025 | Feb 3, 2024 | Jan 31, 2024 | Jan 31, 2023 | Jan 28, 2023 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 3,946,000 | 5,961,000 | 3,933,000 | 4,086,000 | 5,866,000 |
| Inventory | US$ in thousands | 955,000 | 985,000 | 985,000 | 1,052,000 | 1,052,000 |
| Inventory turnover | 4.13 | 6.05 | 3.99 | 3.88 | 5.58 |
January 31, 2025 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $3,946,000K ÷ $955,000K
= 4.13
The inventory turnover for Victoria's Secret & Co has shown fluctuations over the past five periods. The inventory turnover ratio measures how efficiently the company is managing its inventory by indicating how many times the inventory has been sold and replaced within a specific timeframe.
In January 28, 2023, the inventory turnover ratio was 5.58, suggesting that the company turned over its inventory approximately 5.58 times during that period. This indicates that the company was effectively managing its inventory to meet customer demand.
However, in the following period ending January 31, 2023, the inventory turnover decreased to 3.88, signaling a potential slowdown in inventory management efficiency. This could imply excess inventory levels or challenges in sales performance during that period.
Subsequently, in January 31, 2024, the inventory turnover ratio slightly increased to 3.99, indicating a modest improvement in inventory management compared to the previous period. The company may have taken steps to optimize its inventory levels and better align them with customer demand.
By February 3, 2024, the inventory turnover ratio significantly improved to 6.05, suggesting a notable enhancement in inventory management efficiency. This could indicate effective inventory planning and control strategies implemented by the company.
Finally, in the most recent period ending January 31, 2025, the inventory turnover ratio was 4.13, showing a slight decrease from the previous period. While still indicating reasonable inventory management, the slight decline may warrant monitoring to ensure optimal inventory control in the future.
Overall, the analysis of Victoria's Secret & Co's inventory turnover demonstrates variations in inventory management efficiency over the periods examined, highlighting the importance of closely monitoring and adjusting inventory practices to align with changing market conditions and consumer demand.
Peer comparison
Jan 31, 2025