**Victoria’s Secret: A Call for Change Amidst Activist Pressure**
Victoria’s Secret & Co. is facing pressure from activist investors, including Barington Capital Group, to revitalize its brand by reinstating the iconic “angels” — the glamorous supermodels that once defined the company. However, what the retailer truly needs is a buyer who can offer a substantial premium to its long-suffering shareholders and help navigate the challenges of a rapidly evolving lingerie market, free from the constraints of quarterly earnings reports.
The ongoing conflict between the activists and the retailer should shift towards collaboration, focusing on creating value for all investors. If Victoria’s Secret considers a sale, these activists could play a pivotal role in facilitating a take-private deal by aligning with potential buyers or supporting their offers. Barington Capital, which owns over 1% of the company, and BBRC International Pte, with a 12.9% stake, are advocating for changes to the board and strategy to address the company’s stock underperformance. Their concerns are valid; since its separation from L Brands Inc. four years ago, Victoria’s Secret’s stock has plummeted by more than 50%.
Once a leader in the underwear market, Victoria’s Secret has struggled to adapt in the wake of the #MeToo movement, which highlighted its male-dominated image and disconnect with contemporary values. The brand was further tarnished by the association of former L Brands Chairman Leslie Wexner with the disgraced financier Jeffrey Epstein. In an attempt to modernize, Victoria’s Secret replaced the angels with the VS Collective, a group of women celebrated for their achievements. Unfortunately, this initiative did not boost sales and was quietly dissolved.
Under the leadership of new CEO Hillary Super, the company recently revived its fashion show, a once-iconic marketing event, marking a positive step forward. However, Victoria’s Secret continues to grapple with competition from more agile brands like Kim Kardashian’s Skims and Rihanna’s Savage X Fenty, which Super previously managed. To regain its footing, Victoria’s Secret must redefine its concept of sexy, embracing diverse body types and evolving consumer preferences, such as the shift from underwire bras to softer bralettes and sports bras that have become everyday staples.
There are signs of potential recovery, as Victoria’s Secret has recently dressed pop sensation Sabrina Carpenter. With a resurgence in office attire and a growing demand for structured undergarments, the retailer remains the largest underwear seller not only in the U.S. but globally, according to analyst Mary Ross Gilbert.
In conclusion, Victoria’s Secret stands at a crossroads, needing to embrace change and innovation to reclaim its position in the lingerie market. The collaboration between the company and its activist investors could pave the way for a brighter future.
**FAQ**
**What changes are activist investors pushing for at Victoria’s Secret?**
Activist investors are advocating for a revitalization of the brand, including potential changes to the board and strategy, and are suggesting that the company consider a sale to better address its stock underperformance.