Victoria's Secret & Co (VSCO)
Profitability ratios
Return on sales
| Jan 31, 2025 | Feb 3, 2024 | Jan 31, 2024 | Jan 31, 2023 | Jan 28, 2023 | |
|---|---|---|---|---|---|
| Gross profit margin | 36.66% | 36.86% | 36.38% | 35.59% | 35.93% |
| Operating profit margin | 4.98% | 4.04% | 3.98% | 7.53% | 7.61% |
| Pretax margin | 3.55% | 2.30% | 2.38% | 6.57% | 6.80% |
| Net profit margin | 2.65% | 1.79% | 1.76% | 5.49% | 5.54% |
Victoria's Secret & Co has shown consistency in its gross profit margin over the years, with a gradual increase from 35.93% in January 2023 to 36.66% in January 2025. This indicates that the company has been able to effectively manage its cost of goods sold and maintain a healthy level of profitability on its products.
However, the operating profit margin of Victoria's Secret & Co has fluctuated over the same period, starting at 7.61% in January 2023, dropping to 3.98% in January 2024, and then recovering to 4.98% in January 2025. This suggests that the company has experienced challenges in controlling its operating expenses, which impacted its overall profitability.
Similarly, the pretax margin and net profit margin of Victoria's Secret & Co have also seen fluctuations over the years. The pretax margin decreased from 6.80% in January 2023 to 2.30% in February 2024 before improving slightly to 3.55% in January 2025. This indicates that the company has faced pressures on its profitability before making some recovery.
The net profit margin followed a similar trend, declining from 5.54% in January 2023 to 1.79% in February 2024 before rising to 2.65% in January 2025. It is evident that Victoria's Secret & Co has faced challenges in maintaining its bottom-line profitability, possibly due to factors such as competition, operational inefficiencies, or economic conditions.
In conclusion, while Victoria's Secret & Co has demonstrated strength in its gross profit margin, the company has faced fluctuations in its operating profit margin, pretax margin, and net profit margin. This highlights the importance of ongoing efficiency improvements and cost management strategies to ensure sustained profitability in the future.
Return on investment
| Jan 31, 2025 | Feb 3, 2024 | Jan 31, 2024 | Jan 31, 2023 | Jan 28, 2023 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 6.84% | 5.35% | 5.35% | 10.15% | 10.15% |
| Return on assets (ROA) | 3.64% | 2.37% | 2.37% | 7.39% | 7.39% |
| Return on total capital | 68.21% | 15.55% | 58.99% | 124.54% | 29.44% |
| Return on equity (ROE) | 36.42% | 26.14% | 26.14% | 90.86% | 90.86% |
Victoria's Secret & Co's profitability ratios show variations over the analyzed periods.
- Operating return on assets (Operating ROA) remained relatively stable at around 10.15% for January 2023 and February 2024 but decreased to 5.35% by January 2025.
- Return on assets (ROA) followed a similar trend, with a decrease from 7.39% in January 2023 to 3.64% in January 2025.
- Return on total capital fluctuated significantly, from 124.54% in January 2023 to 15.55% in February 2024, before rising to 68.21% by January 2025.
- Return on equity (ROE) also showed variability, with the highest value of 90.86% in January 2023, decreasing to 36.42% by January 2025.
Overall, the profitability ratios suggest that Victoria's Secret & Co experienced fluctuations in generating returns on assets, capital, and equity over the analyzed periods, indicating changing efficiency and effectiveness in utilizing resources to generate profits. Further analysis of the company's financial performance and strategies may be needed to fully understand these fluctuations.