Mall retailer Victoria's Secret (VSCO) has weathered its fair share of struggles over the past several years, but it's betting that bringing back an iconic event to its lineup may help revitalize the brand.
After spooking investors in 2020 by saying it planned to close at least 250 stores, saying goodbye to several embattled execs, and a failed private equity deal with Sycamore Partners, Victoria's Secret has been slowly clawing its way back. Its embattled CEO Les Wexner sold off his 30 million shares, and management has made efforts not only to promote inclusivity but to revitalize the business's' bottom line.
DON'T MISS: American Eagle On a Tear Following Surprise ‘Record Performance’
Shutterstock
Victoria's Secret Brings Back an Old Favorite
During its Q4 earnings call with analysts on March 3, the lingerie and loungewear company announced its iconic and infamous fashion show, which showcases models scantily clad in lingerie, would return after a four-year hiatus.
"We're going to continue to lean into the marketing spend to invest in the business, both at top-of-funnel and also to support the new version of our fashion show, which is to come later this year," CFO Tim Johnson said.
The fashion show was a fundamental part of Victoria's Secret's marketing plan from 1995-2018 and featured models like Tyra Banks, Heidi Klum, Miranda Kerr, Gisele Bündchen, and Kendall Jenner. The show, along with its so-called "Angels," were cancelled in 2018 following record-low ratings and backlash from the global #MeToo movement which encouraged female empowerment.
Victoria's Secret then pivoted to a more female-focused brand voice, featuring models like U.S. Women's National Team soccer star Meghan Rapinoe.
Victoria's Secret Has Battled Issues for Years
It's not clear what the "new version" of the fashion show might look like, but it's likely to be more inclusive.
In the 2010s, under CEO Les Wexner and CMO Ed Razek, allegations of bullying, misogyny, and quality control issues ran rampant.
Razek told Vogue that the fashion show didn't have size-diverse or transgender models because it was a "fantasy," and stepped down in 2019.
Wexner resigned and sold his shares in 2021 following multiple shareholder suits. One suit accused Wexner and other execs of an "entrenched culture of misogyny, bullying, and harassment, as well as ties to Jeffrey Epstein and other egregious mismanagement." Another suit alleged a "hostile abusive environment rife with sexual harassment."
In Q4 of 2022, both net sales and comparable store sales were down 7%. Net income was down 17.5%. Year-to-date, the stock is up some 8%, so maybe a 2023 fashion show is just what the company needs.
