Victoria’s Secret rises as another activist wants a board overhaul
Barington Capital is pushing for a board shake-up and wants to revamp its key bra division.
Victoria’s Secret shares climbed nearly 4% Monday after reports that activist investor Barington Capital Group is building a stake in the struggling lingerie brand.
The firm now owns about 1% of the company, according to The Wall Street Journal, and plans to grow that stake. In a letter to Chairwoman Donna James, Barington called for a board overhaul and urged the company to double down on its core bra business to revive lagging sales and share performance.
Barington is now the second activist known to be in the mix. Australian billionaire Brett Blundy, whose BBRC firm owns nearly 13% of the stock, has also called for a board refresh, blaming “disastrous” decisions and ongoing mismanagement for the brand’s decline.
In May, Victoria’s Secret adopted a poison pill to fend off Blundy’s pressure campaign.
Barington is already familiar with the company. Back in 2019, it bought a stake in what was then Victoria’s Secret’s parent company, L Brands, and urged the company to split off from Bath & Body Works.
The moves come on the heels of a mixed Q1 earnings report: revenue topped expectations, but the company slashed its full-year profit forecast, citing $50 million in tariff-related costs. Meanwhile, the core retail business (especially bras) remains soft.
Victoria’s Secret shares are still down 53% year to date.
