Please ensure Javascript is enabled for purposes of website accessibility

7.3 Magnitude Earthquake Strikes Off Alaska Coast. No Danger to California

8 hours ago

Federal Immigration Crackdown Threatens California’s Historic Housing Reforms

12 hours ago

US House Clears Procedural Hurdle on Cryptocurrency Legislation

13 hours ago

Fresno County Lifts Evacuation Order for Max Fire Near Pine Flat Lake

14 hours ago

Newsom Calls Trump a ‘Son of a B***h’ Over ICE Raids and Guard Deployment

14 hours ago

Trump Indicated to Republican Lawmakers He Will Fire Fed’s Powell, CBS Reports

15 hours ago

Wall Street Steadies as Investors Assess Inflation Data, Earnings

16 hours ago

Trump Administration Sued by US States for Cutting Disaster Prevention Grants

16 hours ago

Open Mic Contest Offers Fans a Chance to Perform at Outside Lands 2025

18 hours ago

PBS and NPR Mount Last-Ditch Fight to Save Federal Funding

2 days ago
A Diminished Victoria's Secret Is Sold
gvw_ap_news
By Associated Press
Published 5 years ago on
February 20, 2020

Share

NEW YORK — Victoria’s Secret, which once defined sexy with its leggy supermodels prancing around in their bras and oversized angel wings, is being sold as women increasingly look for styles that more realistically fit their body type.

“We believe the separation of Victoria’s Secret Lingerie, Victoria’s Secret Beauty and PINK into a privately held company provides the best path to restoring these businesses to their historic levels of profitability and growth. Sycamore, which has deep experience in the retail industry and a superior track record of success, will bring a fresh perspective and greater focus to the business.” — Les Wexner, who founded L Brands
The company’s owner, L Brands, said that the private-equity firm Sycamore Brands will buy 55% of Victoria’s Secret for about $525 million. The Columbus, Ohio company will keep the remaining 45% stake. After the sale, L Brands will be left with its Bath & Body Works chain and Victoria’s Secret will become a private company.
Les Wexner, who founded the company in 1963, will step down as chairman and CEO after the transaction is completed and become chairman emeritus. Wexner has been grappling with his own troubles, including questions over his ties to the late financier Jeffrey Epstein, who was indicted on sex-trafficking charges.
The selling price for Victoria’s Secret signifies a marked decline for a brand with hundreds of stores that booked about $7 billion in revenue last year. Shares of L Brands, slid more than 7% Thursday.
“We believe the separation of Victoria’s Secret Lingerie, Victoria’s Secret Beauty and PINK into a privately held company provides the best path to restoring these businesses to their historic levels of profitability and growth,” said Wexner in a prepared statement. “Sycamore, which has deep experience in the retail industry and a superior track record of success, will bring a fresh perspective and greater focus to the business.”
Photo of a Victoria's Secret store on Broadway in the Soho neighborhood of New York
FILE- In this April 4, 2018, file photo, shoppers walk past the Victoria’s Secret store on Broadway in the Soho neighborhood of New York. Victoria’s Secret’s owner, L Brands, said that the private-equity firm Sycamore Brands will buy 55% of Victoria’s Secret for about $525 million. Victoria’s Secret will become a private company. (AP Photo/Mary Altaffer, File)

The Brands Have Struggled to Keep up With Competition

The brands have struggled to keep up with competition and failed to respond to changing tastes. Rivals like Adore Me and ThirdLove, which have sprouted up online and marketed themselves heavily on social media platforms like Instagram, have focused on fit and comfort while offering more options for different body types.
Victoria’s Secret suffered a 12% drop in same-store sales during the most recent holiday season. L Brands said Thursday that same-store sales declined 10% at Victoria’s Secret during the fourth quarter. Bath & Body Works, which has been a bright spot, is now mostly a candle business, says Randal J. Konik, an analyst at Jefferies.
“The (Victoria’s Secret) brand has lost its way, while the lingerie market is not large or high growth, and has become commoditized,“ Konik wrote Thursday. ”Furthermore, with athleisure taking over, the need for regular bras continues to wane.”
Victoria’s Secret lit up runways and clogged up the internet with its supermodels and an annual television special that mixed fashion, beauty and music. That glamour has faded and so have sales. The show was cancelled last year and shares of Victoria’s Secret, which went from triple digits less than five years ago to a quarter of that.

Founder Recently Apologized for His Ties to Epstein

The company has been beset by allegations of a toxic work environment and its founder recently apologized for his ties to Epstein, who was found hanged in his jail cell after his indictment.

“The separation of Victoria’s Secret into a private entity will enable L Brands to reduce debt and focus on its strong core business of Bath & Body Works, which represents over 80% of its operating income.” — Moody’s vice president Christina Boni
Epstein started managing Wexner’s money in the late 1980s and helped straighten out the finances for a real estate development backed by Wexner in a wealthy suburb of Columbus. Wexner has said he completely severed ties with Epstein nearly 12 years ago and accused him of misappropriating “vast sums” of his fortune.
Wexner offered an apology at the opening address of L Brands’ annual investor day last fall, saying he was “embarrassed” by his former ties with Epstein.
Wexner is the longest-serving CEO of an S&P 500 company. He founded what would eventually become L Brands in 1963 with The Limited retail store, according to the company’s website. Wexner owns approximately 16.71% of L Brands, according to FactSet.
Sycamore has about $10 billion in assets under management. The firm’s investment portfolio includes retailers such as Belk, Coldwater Creek, Hot Topic and Talbots.
“The separation of Victoria’s Secret into a private entity will enable L Brands to reduce debt and focus on its strong core business of Bath & Body Works, which represents over 80% of its operating income,” said Moody’s vice president Christina Boni.

RELATED TOPICS:

DON'T MISS

What Are Fresno Real Estate Experts Predicting for 2025 and Beyond?

DON'T MISS

First California EV Mandates Hit Automakers This Year. Most Are Not Even Close

DON'T MISS

Trump Says He Is Ending Government Funding California’s High-Speed Rail Project

DON'T MISS

Bakersfield Tax Return Preparer Pleads Guilty in $25 Million Fraud Scheme

DON'T MISS

Congressional Hopeful Lorenzo Rios Says No to PBS Funding. Once Led Local Station

DON'T MISS

US Attorney Beckwith Dismissed by Trump Admin, Replaced With Sanchez

DON'T MISS

Trump Says He Would Love for Fed Chair Powell to Resign

DON'T MISS

Trump Says Coca-Cola Agreed to Use Real Cane Sugar in US

DON'T MISS

7.3 Magnitude Earthquake Strikes Off Alaska Coast. No Danger to California

DON'T MISS

US Renewable Power Transmission Project Under Fire From Farmers

DON'T MISS

Fresno Detectives Nab Murder Suspect With Help From Riverside Sheriff’s Deputies

DON'T MISS

Bains Is Challenging Valadao. An Early Look at Fundraising.

UP NEXT

Age Is Just a Number: 80-Year-Old Conquers Death Valley to Mt. Whitney Ultramarathon

UP NEXT

Is US Democracy Threatened? Majority of Californians, Including Republicans, Say Yes

UP NEXT

US Senator Seeks Safety Reforms After Fatal Collision Between Army Helicopter, Regional Jet

UP NEXT

PBS and NPR Mount Last-Ditch Fight to Save Federal Funding

UP NEXT

Elmo’s X Account Gets Hacked, Posts Antisemitic and Racist Messages

UP NEXT

Fire at Boston-Area Senior Living Facility Kills at Least Nine

UP NEXT

Arizona Governor Wants Investigation of Federal Handling of Grand Canyon Fire

UP NEXT

Record Numbers of Americans Say Immigration Is Good for Country: Gallup Poll

UP NEXT

Skydance in Early Talks to Acquire The Free Press, NYT Reports

UP NEXT

State Department Starts Firing More Than 1,350 Workers

US Attorney Beckwith Dismissed by Trump Admin, Replaced With Sanchez

7 hours ago

Trump Says He Would Love for Fed Chair Powell to Resign

8 hours ago

Trump Says Coca-Cola Agreed to Use Real Cane Sugar in US

8 hours ago

7.3 Magnitude Earthquake Strikes Off Alaska Coast. No Danger to California

8 hours ago

US Renewable Power Transmission Project Under Fire From Farmers

9 hours ago

Fresno Detectives Nab Murder Suspect With Help From Riverside Sheriff’s Deputies

10 hours ago

Bains Is Challenging Valadao. An Early Look at Fundraising.

11 hours ago

Trump, White House Race to Stem Epstein Conspiracy Fallout

12 hours ago

Wired Wednesday: Judge Gives Green Light to 4-Story NW Fresno Apt. Complex

12 hours ago

Federal Immigration Crackdown Threatens California’s Historic Housing Reforms

12 hours ago

Trump Says He Is Ending Government Funding California’s High-Speed Rail Project

WASHINGTON – President Donald Trump announced on Wednesday that he is ending government funding for California’s High-Speed Rail...

7 hours ago

A drone view of a California High-Speed Rail Bridge where it crosses through Fresno, California, U.S. June 8, 2025. (Reuters)
7 hours ago

Trump Says He Is Ending Government Funding California’s High-Speed Rail Project

7 hours ago

Bakersfield Tax Return Preparer Pleads Guilty in $25 Million Fraud Scheme

7 hours ago

Congressional Hopeful Lorenzo Rios Says No to PBS Funding. Once Led Local Station

7 hours ago

US Attorney Beckwith Dismissed by Trump Admin, Replaced With Sanchez

President Donald Trump looks on at the White House in Washington, D.C., U.S., July 16, 2025. (Reuters/Umit Bektas)
8 hours ago

Trump Says He Would Love for Fed Chair Powell to Resign

Coca-cola soda is shown on display during a preview of a new Walmart Super Center prior to its opening in Compton, California, U.S., January 10, 2017. (Reuters File)
8 hours ago

Trump Says Coca-Cola Agreed to Use Real Cane Sugar in US

8 hours ago

7.3 Magnitude Earthquake Strikes Off Alaska Coast. No Danger to California

Windmills line a hillside in Palm Springs, California, U.S., November 29, 2019. (Reuters File)
9 hours ago

US Renewable Power Transmission Project Under Fire From Farmers

Help continue the work that gets you the news that matters most.

Search

Send this to a friend