Victoria's Secret & Co (VSCO)
Inventory turnover
| Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Feb 3, 2024 | Jan 31, 2024 | Oct 31, 2023 | Oct 28, 2023 | Jul 31, 2023 | Jul 29, 2023 | Apr 30, 2023 | Apr 29, 2023 | Jan 31, 2023 | Jan 28, 2023 | Oct 31, 2022 | Oct 29, 2022 | Jul 31, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 31, 2022 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 3,951,070 | 4,489,000 | 4,865,700 | 4,787,412 | 5,261,412 | 4,371,709 | 4,523,009 | 4,590,283 | 4,648,283 | 4,984,986 | 3,583,986 | 3,540,000 | 3,419,000 | 3,128,000 | 4,545,000 | 4,646,000 | 4,693,190 | 5,549,190 | 5,002,257 | 5,373,257 |
| Inventory | US$ in thousands | 955,000 | 1,290,000 | 1,019,000 | 987,000 | 985,000 | 985,000 | 1,211,000 | 1,211,000 | 1,040,000 | 1,040,000 | 1,041,000 | 1,041,000 | 1,052,000 | 1,052,000 | 1,242,000 | 1,242,000 | 1,086,000 | 1,086,000 | 1,046,000 | 949,000 |
| Inventory turnover | 4.14 | 3.48 | 4.77 | 4.85 | 5.34 | 4.44 | 3.73 | 3.79 | 4.47 | 4.79 | 3.44 | 3.40 | 3.25 | 2.97 | 3.66 | 3.74 | 4.32 | 5.11 | 4.78 | 5.66 |
January 31, 2025 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $3,951,070K ÷ $955,000K
= 4.14
Victoria's Secret & Co's inventory turnover has fluctuated over the past few years, ranging from a low of 2.97 times in January 2023 to a high of 5.66 times in January 2022. Generally, a higher inventory turnover ratio indicates that the company is selling its inventory more efficiently.
The inventory turnover decreased to 3.66 times by October 2022, possibly indicating slower sales relative to the amount of inventory held. This trend continued with a further decline to 2.97 times by January 2023, suggesting potential challenges in managing and selling inventory effectively.
However, Victoria's Secret & Co managed to improve its inventory turnover back to 4.79 times by July 2023, followed by 5.34 times in February 2024. These higher ratios indicate a positive trend towards more efficient inventory management and sales performance.
Overall, Victoria's Secret & Co should aim to maintain a balance between inventory levels and sales volume to optimize its inventory turnover ratio and ensure efficient utilization of its inventory resources. Continued monitoring and improvement in inventory turnover ratio can contribute to the company's profitability and overall financial health.
Peer comparison
Jan 31, 2025
Jan 31, 2025