Victoria’s Secret sees a chance to connect with a new demographic, who may not have shopped with the brand previously when it was focused on sexy Angels: moms-to-be.
The brand, which will be its company, Victoria’s Secret& Co. has its own ticker “VSCO,” Beginning Aug. 3, the company is going through a dramatic transformation. It is moving away from an image it admits was out of touch with customers.
Both are currently available Victoria’s Secret and L Brands Inc. includes Bath & Body Works.
umbrella. Bath & Body Works Inc. will trade under the ticker “BBWI.”
See: Victoria’s Secret This shows how an apparel company can be hurt by a reluctance of the plus-size market
“[W]e’ve redefined the vision and the purpose and the mission of the company. And our vision is pretty ambitious. It is to be the world’s leading advocate for women,” Martin Waters, chief executive officer of Victoria’s Secret According to the FactSet transcript, lingerie is a virtual Victoria’s Secret This week saw an investor meeting. Bath & Body Works hosted a similar event.
Victoria’s Secret VS Collective, a group of women-focused brand ambassadors that includes Megan Rapinoe (U.S. soccer player) has been announced. and Producer and actor and author Priyanka Chopra Jonas.
The company also remade its board to include more women.
The company is now looking for its next generation. merchandise lineup to correct errors that led to the brand’s “lost relevance with the modern woman,” Waters said.
“There’s maternity, a business that we’ve not previously been in, because in defining the business as being solely about sexy, maternity wasn’t appropriate,” He said. “When we define the business about being about advocacy for women, of course, maternity is an important part of the business.”
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The company is also interested in opportunities in Shapewear and Bridal.
The re-evaluation includes the in-store imagery, which has resulted in the “removal of images that no longer reflect the positioning of the brand.”
The company claims it could still revive its business. fashionIt shows. The Victoria’s Secret Fashion Show had its ratings drop before the event was cancelled. The new version of the Fashion Show would present a completely different spectacle.
“[W]e have historically had a very significant amount of our marketing spend that was around the fashion show, and we saved that money in the last two years,” Waters said. “Our intent is to get back into the fashion show business.”
Another hurdle was the brand’s inability to communicate its values. mall a fleet of stores that is based on this concept. Even before the COVID-19 pandemic, mall traffic declined.
Now, the brand sees opportunities in “off-mall” Stores, 10 will be tested in2022
2020 Victoria’s Secret Closed 241 shops and Many leases have been renegotiated.
According to the most recent monthly sales announcement by L Brands, there are 2,684 company-operated shops. in Canada, U.S. and Greater China has 700 additional franchises around the globe.
The brand is successful because of its fragrances. Victoria’s Secret The top-selling fragrance brand in Waters states that the United States is the most populous country in the world.
“Our main takeaway from L Brand’s Bath & Body Works (BBW) and Victoria’s Secret (VS) analyst events is both brands have more top-line drivers than we appreciated,” UBS analysts wrote this in Note “This reinforces our view the market will increasingly see both brands as having better long-term growth prospects than currently believed.”
UBS rates L Brands shares as a buy with a $111 price goal.
Read: Estee Lauder upgraded, as department store sales drop but ecommerce jumps
“Key focus areas for both brands include optimization of the store fleet, digital growth, international expansion, and product newness and relevance,” Cowen analysts in Note
“As two brands separate as public companies, we view that each brand will be able to acutely focus on driving topline and bottom-line growth, but management execution will be critical to increasing shareholder value.”
Cowen rates L Brands stock on market perform with a $70 target price.
L Brands stock has more that doubled in the past year, rising 107.6% for the year. The S&P 500 index
For the period, it has increased 17.5%