A New York-based hedge fund, Barington Capital, which owns over 1% of Victoria’s Secret, has criticized the company for underperforming compared to its competitors. Since its spin-off from L Brands in 2021, Victoria’s Secret has reportedly lost over $2.4 billion in shareholder value. Barington has urged the company to replace most or all of its board members and abandon the ‘poison pill’ strategy implemented in May to deter hostile takeovers.
Victoria’s Secret shares have declined by more than half this year due to reduced consumer demand. However, the stock experienced a slight increase of about 3% in premarket trading. Barington suggests that the board should consist of directors with expertise in brand revitalization, operational execution, international expansion, and shareholder value creation.
The investment firm advises the retailer to focus on core categories such as bras and campaigns like Angels, while accelerating growth in digital and international markets. Concerns have been raised about the company’s leadership, particularly CEO Hillary Super, who assumed the role in September 2024 with limited public company experience. Super previously served as CEO of Savage X Fenty.
Barington sees potential in the Victoria’s Secret beauty segment, estimating it could be worth as much as the company’s current market value of approximately $1.45 billion. The ‘poison pill’ plan was adopted to counter investment firm BBRC International Private Limited, which increased its stake to nearly 13%.
Barington is also invested in Macy’s and Hanesbrands and has previously advocated for changes at L Brands, which split into Victoria’s Secret and Bath & Body Works. At Macy’s, the firm sought the creation of a real estate unit and cost reductions to enhance share prices.
— new from Reuters