On Monday, the lingerie business, along with Victoria’s Secret Beauty and Pink, officially separated from Bath & Body Works to be its own public company on the New York Stock Exchange. Victoria’s Secret company shares, which started Monday morning at around $45 apiece, jumped nearly 5 percent at the start of the session.
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once part of L brands — including the Bath & Body Works brand — Victoria’s Secret is now Victoria’s Secret & Co. and trades under the stock ticker ‘VSCO’. L brands Inc. was meanwhile renamed Bath & Body Works Inc., with the stock ticker moving from “LB” to “BBWI”.
The spin-off is part of the retailer’s larger growth strategy, following last year’s plans to sell its Lingerie, Beauty and Pink divisions. fell due to the pandemic. The company has said the spin-off will unlock value in the lucrative soap and hand sanitizer brand, while also lingerie division is regaining consumers and market share, which have declined in recent years due to shifts in consumer preferences towards more comfortable and inclusive looks.
Once known for its overtly sexual Angels, Victoria’s Secret has also hired plus-size and transgender models, adding more comfortable styles to its range, including athleisure, swimwear reintroduced into the mix, canceled his high profile fashion show and is now working on updating its shopping fleet to display a changing image.
The brand has also applied for credit protection of his UK business in June 2020 to help cut costs. The move was followed by a joint venture with Next plc three months later, where Next became the majority owner of the 25 stores in the UK and Ireland. (Victoria’s Secret UK was recently wound up.)
But in the United States, growth plans seem to be working. Shares of L Brands, which closed 0.59 percent on Friday to $80.07 each, are up about 228 percent year-over-year. Consumers also seemed to be affected – at least some of them. Income to the inner clothing brand reached $1.5 billion in the most recent quarter.
Last month, the company also revealed a mid-quarter earnings update, with net sales up nearly $1 billion in the nine weeks ended July 9, compared to the same time a year earlier. Victoria’s Secret revenue was more than $1.1 billion, compared to $625 million last year. Sales in the first nine weeks of the current quarter also surpass 2019 pre-pandemic sales of $2.1 billion by 12 percent thanks to better-than-expected trading margins, disciplined inventory management, reduced promotional activity and positive consumer response to the updated range .