The latest challenge of Hillary Super, CEO of Victoria’s Secret Hillary Super: Raise active investors

In Victoria Secret Latest profit call Earlier this month, CEO Hillary Super explained that a brake brand of the wire -free brand was tantamount to successful success, describing it “prominent”, with 30 % growth on an annual and “deep echo with the millennial”.

These comments fell well with Morgan Stanley Analyst Alexandra Straton, who wrote in a later research note that Super seemed to have a better deal with fashion trends from the former administration team. “Super comment showed a deeper understanding of how the edges industry has evolved in recent years,” she wrote. Many other analysts sprayed their response to the profit call with optimistic notes about Super, who has led the underwear since last September and was appointed to renew a brand that spent the past six years cared from one disaster to another.

However, the CEO also competes with a set of problems. Like other retail leaders, Super is moving in Trump’s tariff and uncertainty about consumer spending. The company’s shares have decreased by 50 % since January, after an increase in December on signs of transformation. (The share price is hovering at 20 dollars at the time of writing this report, compared to $ 22 when he took responsibility) Violation of security Last month, the company was forced to close its website for three days. Worse, two active investors – Brett Blaondi in Australia, the largest shareholder in the company, and the hedge fund Parington Capital – called the retailer in their intersection, and called for a comprehensive reform of the board of directors. As Berngton Capital also suggested in Open message The reinstated plate needs to evaluate whether Super is the right person for the position of CEO.

In an e -mail message to luck“The Board of Directors has fully confidence in Hillary’s vision, leadership and ability to open the potential of our iconic brands.”

Super has developed a transformation strategy that includes reaffirming the brand’s authority in bras, and increasing categories such as pink, beauty and sports that focus on young people, while re -imagining the company’s marketing and sales strategy to suit the way customers are now shopping.

But after a few years, Victoria’s Secret finds herself again at a critical turning point because she is trying to re -establish her place in American governor and consumers.

Multi -year lust

Hillary Super had arrived at Victoria Secret 10 months ago, enthusiastically from Wall Street. When the driving change was announced in August, the company’s share price 16 % jump. The painting is looted from the brutality of Rihanna x Fenty, where she was the CEO for a year, provided her with a total compensation package of $ 18 million for this year, including the signing bonus and one -time prize.

Super brought a great factor thanks to her role in Fenty. It also brought extensive experience, after she spent more than three decades in retail leadership roles, including in anthropology, a brand and poster affiliated with worship and subsidiaries Urban clothesAs she spent four years in roles, including the president and international executive director.

But with Victoria’s Secret, Super inherited a trapped brand stained with turmoil and scandal. At the height of Mid-Makets, the company reached a market share of more than 30 %, and received revenues of about $ 8 billion in 2016 under the leadership of the CEO of Sharen Terani. But Turney was rejected in 2017 and was replaced by the Les Wexner owner. Under his leadership, the head of the First Lieutenant, a great leader for a long time, Ed Razik, the company Divide the retail trends Like wearing athleisure. Marketing was also launched in a step with the main cultural transformations, and it remained publicly sexual and at the height of #Metoo movement.

Then, in 2019 and 2020, Victoria Secret became the axis of a scandal that involves his leadership. First, Wexner’s close relationship with the perpetrators of the late perpetrator, Jeffrey Epstein, has become a public relations responsibility, along with Reporting Epstein was a belt of Victoria Secret to attract ambitious models and abuse. (Wexner said before it is An embarrassing of his relations To Epstein, who was called “corrupt”.) Then, in 2020, New York Times Publish a Bomb Determines the allegations of sexual harassment in the company, specifically include Rizk.

By that time, the entire spirit of Victoria Sekriya had greatly fallen. L Brands decided to start from the company, which did in 2021, and separated it from its former sister company, Bath & Body Works. (Trademarks have been renamed since that time and business body clutches.)

In 2020, Kanner, who bought Victoria Secret in 1982 when it was a small series of stores about bankruptcy, Stem.

Restarting false

Victoria Sexies, who was known as turbocharged, was in models such as Carly Close and Haydi Clom, in an attempt to convert her reputation after Wixenner’s exit. During the Martin Waters era, which was appointed Executive Director of Spun-FF, fashion shows that include fictional bras are set with diamonds, and The Victoria’s Secret Angels, a rotating collection of girls’ models that have become synonymous with the brand. Instead, Vs Collective, A group of brand ambassadors Among the different races and sizes, known for their professions in sports or technology, will become the brand’s face.

But while this renewal from the top to the surface sparked a conversation about feminism and the definition of “exciting”, it did not ignite much emotion among consumers. The brand renamed has been considered Unreliable By some critics, excessive correction by others. The company’s market share has decreased to 18.7 % By 2022, the company changed the strategies again while Waters was still in the Zawiya office, and began to restore some of the model’s history, employment Healy Bieber and Emily RatjkovskyReturning fashion shows. In a message about the departure of Waters, the council said it “established the basis for VS & Co to enter the next chapter.”

Super is now assigned to find ways of the needle thread between the past and the future in Victoria’s Secret. In the last profit call, the CEO said she felt that the company’s marketing had become “very dangerous” in recent seasons.

“We have an opportunity to get a more vibrant and happier expression about VS,” she said.

Angry investors

But activists may put in super plans.

In March of this year, BBRC International Private, an investment company run by Australian billionaire Bret Blondi, has increased its share in Victoria Secret to about 13 %, prompting the retailer. To adopt toxins To ward off possible acquisition. On June 9, Blundy sent the Victoria Secret Council message Decode it from retailers and its management team.

Just one week later, the New York-based hedge fund said it would add to its share in Victoria Secret-it is believed that it is More than 1 % Now, although the exact number is not yet known – as it is Call To fix its board, re -focus on the basic brand products, and drop it Poison pills. “Since its accidental and general inclusion in 2021, the company has lost more than $ 2.4 billion of shareholders’ value,” wrote the president of Barington Capital and CEO James Metarutanda in Open message To the council.

Barington Capital or Brett Blundy investment company did not respond luckRequest to comment.

Both active investors feel that they know what Victoria needs. Blondi, Australian billionaire, has a history in business and recently bought Interior brand. His message to the company drew attention to the total return of the shares holder by -64 % since 2021 and what he called the “catastrophic” capital, including the Buying me in 2022, which “failed to generate meaningful returns.”

Meanwhile, at the same time, at the same time, He has already called for changeS in Victoria’s Secret once, before it was stopped from L. Metarutanda in its open letter: “The price of the brands of brands L increased by 221.5 % during our term as a consultant to its board of directors.”

Given that Victoria’s Secret is one of the most famous brands in the world, the message said: “The company must create a long -term value for its shareholders.”

The activist argued: “Victoria’s Secret’s performance has led to the weakness of his peers and the market as a whole since it became an independent company,” noting dull growth. He also said that Super lacked executive experience, since her work in Savage X Fenty lasted for only one year.

But the harshest Burington’s criticism was for the council and its president, Donna James, the director for a long time in Victoria’s Secret. The hedge fund believes that the board of directors has wrong skills and fresh needs. “Among the current nine directors,” I noticed that “six headed the company’s decline since its general list.”

“Early transformation”

Victoria Secret retracts the activist’s claims, noting a super focus on bras and fixed improvements in the company, with momentum growth in its pink brand, as well as its health and beauty.

Although the company reduced its sales instructions for the second quarter when it announced the results of the first quarter earlier this month, it was also informed 9 centsOvercoming the market expectations of 4 cents. At 1.35 billion dollars, sales were a few analysts’ expectations, while the retailer also reduced his total losses compared to the same period in the previous year.

A Wales Vargo The analyst also published a super business in the company, noting that Victoria’s Secret witnessed improved performance in North American sales and pink brands in the second half of last year, after its appointment. Bloomberg expects the entire year sales research a victory for the company’s guidelines and reaches 6.2-6.3 billion dollars in the second half of this year. JPMorgan analyst set the current moment as “early in the transformation.”

Some retail sales control seems ready to give Super time to prove itself. in LinkedIn post“Victoria’s Secret is mainly the brand of women. Men were running it for some time, and they eventually made a division of it.”

“Now Hillary Super is her head and started to re -invent things. She was in the post for a year and must be given an opportunity to put her vision into practice. But adults of active investors have already started.” “Activists are also mostly men. I think frankly that these financial men sometimes should sit and occupy a seat, because they really don’t understand women’s fashion.”

Other defenders also wonder whether Super is sentenced to prematurely. Patricia Lizaraja, Administrative partner and chief investment employee in Hypatia Capital, which is running Invest a trading box for exchange In public companies managed by women, she says she was shocked by the pressure that has reached the active pressure has reached very quickly.

Then again, you notice that active investors are more likely to pursue executive managers, According to studies. The intervention of activists seems to be one of the many reasons They have shorter periods As an executive president. “We have some of the real stars who have turned into falling brands,” she said, noting the CEOs such as Fran Horwitz, who led Revival. “There is a follow -up model.”

Super recently rented senior new leaders, including a new marketing head and new creative manager. She referred to her leadership team The name “Super Squad”

Together, they will have to move as soon as possible.