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VSCO (Victoria's Secret) Degree of Operating Leverage : 31.94 (As of Jan. 2025)


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What is Victoria's Secret Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Victoria's Secret's Degree of Operating Leverage for the quarter that ended in Jan. 2025 was 31.94. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for Victoria's Secret's Degree of Operating Leverage or its related term are showing as below:

VSCO's Degree of Operating Leverage is ranked worse than
93.49% of 1090 companies
in the Retail - Cyclical industry
Industry Median: 1.26 vs VSCO: 31.94

Victoria's Secret Degree of Operating Leverage Historical Data

The historical data trend for Victoria's Secret's Degree of Operating Leverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Victoria's Secret Degree of Operating Leverage Chart

Victoria's Secret Annual Data
Trend Jan19 Jan20 Jan21 Jan22 Jan23 Jan24 Jan25
Degree of Operating Leverage
Get a 7-Day Free Trial 3.18 -38.27 6.95 18.96 31.94

Victoria's Secret Quarterly Data
Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24 Oct24 Jan25
Degree of Operating Leverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 18.96 19.24 23.07 20.86 31.94

Competitive Comparison of Victoria's Secret's Degree of Operating Leverage

For the Apparel Retail subindustry, Victoria's Secret's Degree of Operating Leverage, along with its competitors' market caps and Degree of Operating Leverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Victoria's Secret's Degree of Operating Leverage Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Victoria's Secret's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Victoria's Secret's Degree of Operating Leverage falls into.


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Victoria's Secret Degree of Operating Leverage Calculation

Victoria's Secret's Degree of Operating Leverage for the quarter that ended in Jan. 2025 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 307 (Jan. 2025) / 246 (Jan. 2024) - 1 )/( 6230 (Jan. 2025) / 6182 (Jan. 2024) - 1 )
=0.248/0.0078
=31.94***

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

** TTM data of EBIT and Revenue was used to calculate Degree of Operating Leverage.
*** Please be aware that the Degree of Operating Leverage calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.


Victoria's Secret  (NYSE:VSCO) Degree of Operating Leverage Explanation

Degree of Operating Leverage (DOL) is a leverage ratio that measures the sensitivity of a company’s operting income, also referred to as Earnings Before Interest and Taxes (EBIT), to fluctuations in its Revenue. DOL is a method used to quantify a company’s operating risk. This risk is related to the company's structure of variable costs and fixed costs. Since the fixed costs do not allow the company to adjust the operating costs, the operating risk rises with a higher fixed-to-variable costs proportion.

A high Degree of Operating Leverage indicates that the company’s fixed costs exceed its variable costs. By increasing the sales, the company can earn more profits. In addition, the company must be able to maintain relatively high sales to cover all fixed costs.

Be Aware

The use of operating leverage varies across different industries and business sectors, and the application of Degree of Operating Leverage (DOL) should be adjusted accordingly.


Victoria's Secret Degree of Operating Leverage Related Terms

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Victoria's Secret Business Description

Traded in Other Exchanges
Address
4 Limited Parkway East, Reynoldsburg, OH, USA, 43068
Victoria's Secret & Co is a retailer of women's intimate and other apparel and beauty products marketed under the Victoria's Secret, PINK, and Adore Me brand names. It also includes the merchandise sourcing and production function serving the Company and its international partners. The Company operates as a single segment designed to serve customers seamlessly through stores and online channels.
Executives
Bbrc International Pte Ltd 10 percent owner 3 PHILLIP STREET, #11-01, ROYAL GROUP BUILDING, SINGAPORE U0 048693
Donna James director ONE MIRANOVA PLACE, SUITE 1040, COLUMBUS OH 43215
Timothy A Johnson officer: Chief Financial Officer
Rod R Little director 1 HSN DRIVE, ST. PETERSBURG FL 33729
Chris Rupp officer: Chief Customer Officer ALBERTSONS COMPANIES, INC., 250 PARKCENTER BOULEVARD, BOISE ID 83706
Amy Hauk officer: CEO of Pink C/O THE CHILDRENS PLACE, 915 SECAUCUS RD, SECAUCUS NJ 07094
Mariam Naficy director C/O YELP INC., 140 NEW MONTGOMERY ST., 9TH FLOOR, SAN FRANCISCO CA 94105
Anne Sheehan director THREE LIMITED PARKWAY, COLUMBUS OH 43230
Martin P Waters director, officer: Chief Executive Officer 1740 BROADWAY, NEW YORK NY 10019
Laura B Miller officer: Chief Human Resources Ofcr 1501 YAMATO ROAD, BOCA RATON FL 33431
Brian Leinbach officer: Chief Information Officer 4 LIMITED PARKWAY EAST, REYNOLDSBURG OH 43068
Melinda R. Mcafee officer: Chief Legal Officer 4 LIMITED PARKWAY EAST, REYNOLDSBURG OH 43068
Gregory Unis officer: CEO of VS Beauty 4 LIMITED PARKWAY, REYNOLDSBURG OH 43068
Lauren B Peters director FOOT LOCKER INC, 112 WEST 34TH STREET 4TH FL, NEW YORK NY 10120
Jacqueline Hernandez director LIMITED PARKWAY EAST, REYNOLDSBURG OH 43068