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Barington is no stranger to Victoria's Secret, having been at L Brands prior to the spinoff of the lingerie retailer.
Barington Capital urged Victoria's Secret to replace its board with directors experienced in brand revitalization, criticizing CEO Hillary Super's leadership strategy.
Activist investor Barington Capital Group joins a growing chorus of dissatisfied Victoria's Secret VSCO shareholders.
Activist investor Barington Capital Group plans to mount a push to change Victoria's Secret's board of directors and end a recently adopted shareholder's rights plan, according to a person familiar with the situation.
Barington Capital Group plans to push the lingerie retailer to overhaul its board.
Telsey Advisory Group analyst Dana Telsey reiterated the Market Perform rating on Victoria's Secret & Co. VSCO with a price forecast of $24.
I rate VSCO as hold due to a challenging outlook: early turnaround signs are offset by core business weakness, tariffs, and activist pressure. While PINK and international segments show growth, the core intimates category remains soft and faces secular headwinds from shifting consumer preferences. Tariff impacts and activist investor scrutiny add further uncertainty, with potential for management changes if results don't improve soon.
Victoria's Secret & Co. VSCO reported in-line earnings for the first quarter on Wednesday.
Victoria's Secret's recent financial performance has been mediocre, with revenue and net income significantly down from 2021 levels. Despite operational softness, the stock is now unreasonably cheap, trading at low price-to-sales and price-to-earnings ratios. Market expectations for future growth are very low, which I view as a positive for value-oriented investors like myself.
Victoria's Secret & Co. reported mixed results as margin pressures offset SG&A improvement and slowing sales declines. The company faces activist pressure, but a poison pill and its debt load limit potential outcomes. With secular and cyclical challenges, limited growth and material debt, VSCO shares are a hold, and investors should use rallies to sell.