Victoria’s Secret knows it’s lost its sexy, and it is trying to reclaim it, but knowing there’s a problem and actually fixing it are two different things. The troubles at the lingerie chain have sent parent L Brands shares slumping 75% from its 2015 peak.
and is cutting its regular dividend by half to free up cash. The company has named an executive to revamp the Pink brand, targeting a college-age crowd, and the Victoria's Secret lingerie label is now being led by former Club Monaco president and CEO John Mehas, who joined the company recently.
“We are taking a fresh hard look at everything in the business,” CFO Stuart Burgdoerfer said on a conference call Thursday morning, adding that that even includes looking at the brand's famous Fashion Show. “Everything is on the table for review and change. The dominant focus is understanding the customer and making significant improvement to the merchandise assortment.”
And that may be costly for Victoria’s Secret amid growing signs that the glammed-up look of its Angels—at the center of its brand pitch—is losing relevance to a growing crop of shoppers seeking to express themselves just the way they are while favoring brands they see as more authentic. For instance, Victoria’s Secret’s mall rival Aerie, owned by American Eagle Outfitters and known for its #AerieReal tagline and for featuring real customers in natural looks, doubled its U.S.
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