Barington Capital Plans Board Overhaul Victoria’s Secret

Activist hedge fund Barington Capital Group has acquired over a 1% stake in Victoria's Secret and is pushing for significant strategic and board changes to revitalize the lingerie retailer's performance. Barington aims to refresh the board of directors, potentially replacing most or all members, and seeks the dismantling of the recently adopted shareholder rights plan designed to prevent takeovers. The firm wants Victoria's Secret to refocus on its core bra business and expand its digital and international presence, highlighting the latent value in its beauty division. Despite these pressures, Victoria's Secret, under CEO Hillary Super, remains confident in its current strategy and is open to dialogue, although Barington has not yet formally engaged with the company. The retailer has faced challenges including a cyber incident impacting sales and competition from emerging brands, contributing to a share price decline of over 50% this year. Analyst outlooks show a mixed sentiment with an average hold recommendation and price targets suggesting potential upside, reflecting ongoing market uncertainty amid the activist campaign.