Victoria's Secret Shares Rise on Activist Board Overhaul Pressure

Activist investor Barington Capital Group has acquired more than a 1% stake in Victoria's Secret and is urging a significant overhaul of the company's board of directors, criticizing current leadership and strategic direction. Barington's CEO James Mitarotonda expressed concerns over CEO Hillary Super's limited experience and lack of focus on the core bra business, instead emphasizing secondary brands and athleticwear, which the investor sees as detrimental. The firm advocates for replacing most, if not all, current board members with independent directors experienced in brand revitalization, operational execution, and international growth to restore shareholder value. Victoria's Secret is also facing pressure from another major investor, Brett Blundy’s BBRC firm, which holds nearly 13% of the stock and has similarly called for a board refresh. Shares of Victoria's Secret have risen following these reports, despite the company having lost more than half its value this year amid disappointing financial forecasts and a recent cyberattack-related disruption. Barington aims to refocus Victoria's Secret on its core lingerie and beauty businesses to improve performance and market valuation.