Important note
This AI stock analysis for Victoria's Secret is not up to date. Creating and accessing our AI stock Analysis (powered by our data and Chat GPT) is only available for our premium users. Sign up to get access today!
Victoria's Secret - AI Stock Analysis
Analysis generated March 13, 2025
Victoria's Secret is a globally recognized brand specializing in lingerie, apparel, and beauty products. Known for its high-profile marketing and fashion shows, the company has a strong presence both online and in physical retail spaces. Despite facing challenges in recent years, Victoria's Secret remains a key player in the women's fashion and beauty industry.
Fundamental Analysis
The most recent quarterly revenue for Victoria's Secret stood at $1.35 billion. This figure is a 4.94% decrease from the previous quarter, which could signal some short-term instability. However, compared to the same quarter last year, revenue increased by 8.72%, demonstrating positive year-over-year growth.
The company's net income for the last quarter was $56 million, a 275% decrease compared to the quarter before it. This significant drop raises concerns about profitability. Nevertheless, compared to the same quarter last year, net income rose by 21.13%, showing some long-term improvement.
EBITDA for the last quarter was $43 million, representing a 163.24% decrease compared to the previous quarter. Like net income, this sharp decline is worrisome. However, year-over-year, EBITDA has increased by 29.51%, indicating some operational efficiencies and profitability improvements over the longer term.
The company’s current Price-to-Earnings (P/E) ratio is 7.93. This low P/E ratio could indicate that the stock is undervalued, potentially presenting a buying opportunity for investors with a bullish outlook.
Technical Analysis
Victoria's Secret’s stock price is currently at $17.65. Over the past month, the stock price has decreased by 45.66%, raising short-term concerns. Over the longer term, the stock price has decreased by 6.86% compared to a year ago, which could indicate enduring challenges.
The Simple Moving Average for the past 10 days (SMA10) is $19.10, which is lower than the previous SMA10 of $19.73. This downward trend suggests potential bearish price movement. The Relative Strength Index (RSI) stands at 54.2, indicating a neutral market condition at the moment.
Alternative Data Analysis
Open job positions at Victoria's Secret are currently 782, down by 33% in the last couple of months. This reduction could be a sign of cost-cutting measures which can be concerning for future growth. Furthermore, only 44% of employees have a positive business outlook, another red flag.
Customer acquisition data reveals 18 million visitors to the Victoria's Secret website, down by 34% in the last couple of months. Similarly, daily mobile app downloads are estimated at 3,200, down by 40% over the same period, indicating potential customer loss.
Customer engagement metrics show that Victoria's Secret has 79 million Instagram followers and 10 million Twitter followers, both with zero growth in the last couple of months, suggesting a stagnation in interest in the brand.
Lastly, according to AltIndex's AI score, which aggregates fundamental, technical, and alternative data analysis, Victoria's Secret holds a score of 43, suggesting a hold signal.
Conclusion and Recommendation
In summary, Victoria's Secret is exhibiting mixed performance indicators. The company's revenue and net income show positive year-over-year trends but worrisome quarter-over-quarter declines. The technical analysis points to a bearish short-term trend, and the alternative data analysis reveals declining employee sentiment and customer engagement. Given these mixed signals, Victoria's Secret stock currently holds a cautious outlook. Potential investors should consider these factors closely, and existing shareholders might contemplate holding their positions for now, given the AI score of 43, which suggests a hold recommendation.
Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.
