Barington Capital Seeks Board Overhaul at Victoria’s Secret Amid Sharp Stock Drop

Activist investor Barington Capital Group, holding more than 1% of Victoria's Secret stock, is pushing for significant changes at the lingerie retailer to address its sharp stock decline of over 50% year-to-date. Barington is advocating for a board overhaul, potentially replacing most or all members with independent directors, and urges a strategic refocus on Victoria's Secret's core bra business and the underleveraged beauty segment to revive stock performance. This campaign follows similar pressure from Australian billionaire Brett Blundy's firm BBRC International, which owns nearly 13% of the shares and has criticized the current board's decisions. Victoria's Secret has responded to some pressure by adopting a shareholder rights plan, or "poison pill," to prevent further accumulation by activist investors, a move Barington opposes and wants reversed. The company reported Q1 earnings and sales in line with analyst expectations but lowered its fiscal 2025 adjusted operating income guidance, reflecting ongoing challenges. Despite these pressures, analysts hold a cautious "Hold" rating on Victoria's Secret shares, with some potential upside based on valuation forecasts.