Victoria's Secret faces second activist fight in a week

Victoria's Secret, the world-famous lingerie maker, is facing a new activist attack. Barington Capital Group plans to seek changes in the company's board and a reversal of a shareholder-rights plan put forward by the company. Less than a week ago, another Victoria's Secret investor, Australia's BBRC International, accused the board of «systematic value destruction.»  

Barington, which owns more than 1% of Victoria's Secret (the exact stake unknown), plans to force a board reshuffle and refocus on the core bra business, the WSJ reported on Sunday, based on a letter addressed to Chair Donna James. 

Barington also sees opportunities to unlock value in the retailer's beauty business, which the activist investors believe to be worth as much as the whole firm, judging by its current market capitalization. At the close of trading on Friday, June 13, it was $1.45 billion.  

Victoria's Secret is one of the most iconic brands in the world, but its managers, including CEO Hillary Super, lack the experience and strategic clarity needed for a turnaround, the letter stated.

Since 2021, when Victoria's Secret went public, shares have fallen nearly 67% to $18.19 apiece. Investors had hoped Super's arrival in September last year would breathe new life into the business, while it has since focused on new areas including sportswear and swimwear, the WSJ reported. Since the start of 2025, the stock is off 56%. In premarket trading today, June 16, it has added 2.6% as of this writing.

A Victoria's Secret spokesperson told the WSJ that the company had not heard from Barington. 

Less than a week ago, BBRC, the owner of a 12.9% stake in Victoria's Secret, published a letter in which it expressed misgivings about how the firm is run. According to BBRC, the board has engaged in «systematic value destruction» and «catastrophic» capital misallocation and never has taken responsibility for its «failed» initiatives. 

The BBRC also mentioned the recent cyber attack that forced Victoria's Secret to shut down its online store and internal systems for four days. It also delayed the publication of financial statements.

The retailer published only on June 11. The net loss halved in the first quarter to $2 million, while revenue rose to $1.35 billion, ahead of the company's guidance by 1.7%. However, the company's revenue expectations for the current quarter ($1.38-1.41 billion) came in below Wall Street analysts' forecasts. That was attributed to weak consumer demand in an uncertain macro environment, the WSJ reported.

On May 20, the retailer's board approved a temporary «poison pill.» This was in response to BBRC's increasing equity stake in the company. It had long been a passive investor, but since March it had been building up its stake. The measure makes it hard to gain control of the retailer by buying shares in the open market without triggering the «poison pill,» which will give other shareholders the opportunity to purchase shares at a discount, the company explained.  

Barington stated in its letter that it considers the plan to be counterproductive and will push to rescind it, wrote the WSJ. 

Among Wall Street coverage analysts, Victoria's Secret has five «hold» recommendations, according to MarketWatch. There are another three «buys» and three «sells.» The average target price is $22.09 per share, implying upside of more than 21% versus the last closing price.