Victoria’s Secret makes its debut in the public market.
On Monday, the underwear company, with Victoria’s Secret Beauty and Pink, officially split from Bath.
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Formerly from L Brands, which includes the Bath brand
VSCO SHARES, which were trading temporarily on Monday, closed up 2. 72% at $46. 01 each. Shares of L Brands closed down 0. 20% at $79. 91 each.
The spin-off is a component of the retailer’s larger expansion strategy, after last year’s plans to sell the Lingerie, Beauty and Rose departments failed amid the pandemic. and hand sanitizer, while helping the underwear department regain customers and market shares, which have declined in recent years thanks to the conversion of customers’ personal tastes into a more comfortable and inclusive appearance.
Victoria’s Secret, once known for its blatantly sexual angels, has also hired plus-size and transgender models, added more comfortable styles to the variety, added athleisure, reintroduced into the mix, canceled its high-profile fashion show and is now in the process of updating its store fleet to reflect a changing image.
The logo was also implemented for credit coverage of its UK business in June 2020 to help reduce costs. This followed through a joint venture with Next plc 3 months later, where Next became the majority shareholder of the 25 uk-based retail outlets. and Ireland (Victoria’s Secret UK was recently put into liquidation).
But in the United States, expansion plans seem to be working. L Brands shares were up approximately 228% year-on-year. Consumers will also be influenced, at least some of them. The underwear brand’s revenue topped $1. 5 billion in the last quarter.
Last month, the company also revealed an update to its mid-quarter results, with net sales expanding to nearly a billion dollars in the nine weeks to July 9, compared to the same era a year earlier. Sales in the first nine weeks of the current quarter also outperformed 2019 pre-pandemic sales by $2. 1 billion to 12% thanks to better-than-expected product margin rates, disciplined inventory management, reduced promotional activity, and a positive customer reaction to the updated assortment.