Evan Clark
4 min read
Updated 4:22 p.m. ET June 16
Victoria’s Secret & Co. has another unhappy investor calling for change.
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The lingerie giant, which has been working on a reboot under chief executive officer Hillary Super and fending off BBRC International, is now taking flack from James Mitarotonda, whose Barington Capital has a stake in the company of more than 1 percent.
Mitarontonda, chairman and CEO of the activist investment fund, has pushed for change at Victoria’s Secret before. Last time he was able to get on the inside through a consulting agreement with the company that lasted from 2019 until Victoria’s Secret was set up as an independent company in 2021.
But in an open letter to the retailer’s chairperson, Donna James, Mitarontonda had a long list of complaints and pointed to a 57.2 percent stock decline since the spin off.
In addition to the $2.4 billion in market capitalization lost since the public listing, Mitarontonda highlighted:
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Declines in revenue and gross margins and increases in inventory that “reflect deep-rooted operational and strategic shortcomings.”
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Senior management turnover and a lack of marketing and merchandising focus.
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Super’s “limited chief executive and public company experience.”
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And her focus on relaunching Pink and expanding into athletic wear “while failing to prioritize the company’s core business and international growth.”
Victoria’s Secret’s focus has shifted in recent years. The brand was long known for its overt sexiness and televised runway shows, but suddenly found itself on the outs and criticized for catering to the male gaze as cultural sentiment shifted.
Now Victoria’s Secret, which relaunched its runway show last year with women at the helm, is feeling its way forward and trying to find the right balance for the business.
“We believe that the company’s attempt to simultaneously embrace disparate cultural narratives has resulted in a diluted brand identity, while its core business — Victoria’s Secret’s leading bra and intimate apparel franchise — has suffered from seeming inattention and mismanagement,” Mitarontonda said.
He said the company should be “reestablishing merchandising discipline, launching bold, exciting and imaginative marketing campaigns, and, where appropriate, reintroducing successful legacy elements, such as the iconic Angels campaign.”
