CEO of L Brands may step down

Antelope Valley Press - - BUSINESS - By MICHELLE CHAP­MAN AP Busi­ness Writer

The CEO of the par­ent com­pany for Vic­to­ria’s Se­cret, Bath & Body Works and other stores is in talks to step down from the top post, ac­cord­ing to a me­dia re­port.

The Wall Street Jour­nal

also said Wed­nes­day that L Brands is con­sid­er­ing strate­gic op­tions for Vic­to­ria’s Se­cret that could in­clude a full or par­tial sale of the lingerie busi­ness, cit­ing peo­ple fa­mil­iar with the mat­ter.

The news­pa­per said L Brands is seek­ing to reach a de­ci­sion on suc­ces­sion plans and a pos­si­ble Vic­to­ria’s Se­cret trans­ac­tion “in the com­ing weeks,” but there’s no guar­an­tee a deal will be made.

The re­ported talks come as Vic­to­ria’s Se­cret’s overtly sexy style has clashed with a new at­ti­tude from young women who want more in­clu­sive fits. And it’s fac­ing in­creas­ing com­pe­ti­tion from lingerie on­line na­tives like Adore Me and ThirdLove, which use more di­verse mod­els and of­fer more com­fort­able styles. While Vic­to­ria’s Se­cret has made some moves to change its mar­ket­ing, the ef­forts haven’t been enough to stop sales de­clines.

Dur­ing the hol­i­day sea­son, Vic­to­ria’s Se­cret suf­fered a 12% drop in same-store sales.

Ran­dal Konik of Jef­feries said in an an­a­lyst note that he agreed that a “fresh per­spec­tive would likely be a pos­i­tive in ‘right­ing the ship,’” but that there’s still sig­nif­i­cant chal­lenges ahead for Vic­to­ria’s Se­cret, in­clud­ing in­creased com­pe­ti­tion and the brand re­ly­ing heav­ily on pro­mo­tions.

Bil­lion­aire Les­lie Wexner is the long­est-serv­ing CEO of an S&P 500 com­pany, hav­ing served as CEO for more than five decades. He founded what would even­tu­ally be­come L Brands in 1963 with one The Lim­ited re­tail store, ac­cord­ing to the com­pany’s web­site. Wexner owns ap­prox­i­mately 16.71% of L Brands, ac­cord­ing to Fac­tSet.

Last year Wexner ac­cused Jef­frey Ep­stein of mis­ap­pro­pri­at­ing “vast sums” of his for­tune while man­ag­ing his per­sonal fi­nances more than a decade ago.

L Brands Inc., based in Colum­bus, Ohio, said Wed­nes­day that it doesn’t com­ment on ru­mors.

The com­pany’s stock surged nearly 13% at the open­ing of reg­u­lar trad­ing Wed­nes­day.

Newspapers in English

Newspapers from USA

© PressReader. All rights reserved.