American Eagle Outfitters vs Victoria's Secret
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The short version
- Victoria's Secret is the larger business, with $6.6B of revenue in fiscal 2025 against $5.5B for American Eagle Outfitters.
- Victoria's Secret grew revenue faster (5.2%, against 4.1%).
- Victoria's Secret turned more of its sales into free cash flow (4.8% FCF margin, against 3.5%).
- Victoria's Secret earned a higher return on the capital invested in it (17.7%, against 11.5%).
- Investors pay more for each dollar of Victoria's Secret’s earnings: a P/E of 20.2x against 9.1x for American Eagle Outfitters.
| Latest fiscal year | AEO · FY25 | VSXY · FY25 |
|---|---|---|
| Size | ||
| Market cap | $3.0B | $7.6B |
| Revenue | $5.5B | $6.6B |
| Free cash flow | $195M | $312M |
| Net income | $192M | $161M |
| Growth | ||
| Revenue growth | 4.1% | 5.2% |
| 5-year growth | 8.1% | 3.9% |
| Share count change | −10.3% | 2.5% |
| Profitability | ||
| Gross margin | 36.5% | 36.4% |
| Operating margin | 4.1% | 4.1% |
| Net margin | 3.5% | 2.5% |
| FCF margin | 3.5% | 4.8% |
| Return on capital | 11.5% | 17.7% |
| Return on equity | 11.1% | 21.5% |
| Balance sheet | ||
| Net debt | −$197M | $457M |
| Net debt / EBITDA | −0.4x | 0.9x |
| Dividends and buybacks | $142M | $0.0M |
| Valuation & quality | ||
| P/E | 9.1x | 20.2x |
| Piotroski F-score | 4 | 6 |
Revenue
FY16
AEO $3.6B
VSXY —
FY17
AEO $3.8B
VSXY —
FY18
AEO $4.0B
VSXY —
FY19
AEO $4.3B
VSXY $7.5B
FY20
AEO $3.8B
VSXY $5.4B
FY21
AEO $5.0B
VSXY $6.8B
FY22
AEO $5.0B
VSXY $6.3B
FY23
AEO $5.3B
VSXY $6.2B
FY24
AEO $5.3B
VSXY $6.2B
FY25
AEO $5.5B
VSXY $6.6B
AEO
VSXY
Operating margin
FY16
AEO 9.2%
VSXY —
FY17
AEO 8.0%
VSXY —
FY18
AEO 8.4%
VSXY —
FY19
AEO 5.4%
VSXY −11.9%
FY20
AEO −7.2%
VSXY −1.9%
FY21
AEO 11.8%
VSXY 12.8%
FY22
AEO 5.0%
VSXY 7.5%
FY23
AEO 4.2%
VSXY 4.0%
FY24
AEO 8.0%
VSXY 5.0%
FY25
AEO 4.1%
VSXY 4.1%
AEO
VSXY
Free cash flow
FY16
AEO $204M
VSXY —
FY17
AEO $225M
VSXY —
FY18
AEO $268M
VSXY —
FY19
AEO $205M
VSXY $90.0M
FY20
AEO $74.5M
VSXY $547M
FY21
AEO $69.8M
VSXY $682M
FY22
AEO $146M
VSXY $273M
FY23
AEO $406M
VSXY $133M
FY24
AEO $254M
VSXY $247M
FY25
AEO $195M
VSXY $312M
AEO
VSXY
Return on capital
FY16
AEO 26.0%
VSXY —
FY17
AEO 26.0%
VSXY —
FY18
AEO 30.2%
VSXY —
FY19
AEO 21.5%
VSXY —
FY20
AEO −30.8%
VSXY —
FY21
AEO 46.9%
VSXY 95.1%
FY22
AEO 12.6%
VSXY 38.8%
FY23
AEO 11.6%
VSXY 15.3%
FY24
AEO 23.3%
VSXY 17.5%
FY25
AEO 11.5%
VSXY 17.7%
AEO
VSXY
Each company's latest fiscal year; fiscal years end in different months. The best value in each row is highlighted where higher (or lower) is clearly better. Not investment advice.