Once the undisputed icon of American lingerie retail, Victoria’s Secret is now standing at a strategic crossroads. Faced with activist investor pressure, waning market relevance, and a legacy brand in need of reinvention, the real opportunity may no longer lie in reviving its signature angels — but in finding a buyer.
Activists Want Change — But the Market May Want More
Activist investors Barington Capital Group and BBRC International are calling for a board shake-up and a strategic overhaul at Victoria’s Secret & Co. Both firms point to a deep decline in shareholder value since the company spun out from L Brands four years ago — the stock has shed over 50% of its value.
But amidst calls to revisit its former glory, a more fundamental question emerges: Is Victoria’s Secret better served as a private company?
Going private could remove the pressures of quarterly earnings, unlock capital for innovation, and enable a top-to-bottom transformation that’s difficult under the scrutiny of public markets.
A Brand in Transition — And in Search of Identity
The post-#MeToo era forced Victoria’s Secret to distance itself from its hypersexualized image. The company retired its famed “angels” and introduced the VS Collective — a new group of spokeswomen defined by achievement over appearance. But the shift, while socially timely, failed to translate into meaningful sales growth and was eventually abandoned.
Under new CEO Hillary Super, Victoria’s Secret attempted to bring back some of its brand DNA, reviving its iconic fashion show and aligning with rising pop star Sabrina Carpenter. Yet, the competitive landscape has changed. Brands like Skims and Savage X Fenty have rewritten the rules of lingerie retail, championing body diversity, inclusive sizing, and a modern definition of “sexy” — and they’ve captured younger audiences in the process.
Victoria’s Secret, though still the world’s largest lingerie retailer by volume, needs more than nostalgia. It needs a structural reset.
Is a Private Equity Play the Smartest Path Forward?
Despite its brand baggage, Victoria’s Secret still has significant assets:
- Global recognition and strong positioning with Gen Z via sub-brand Pink
- Multichannel presence through retail, e-commerce, and international expansion
- Turnaround potential in key segments like swimwear, activewear, and beauty
The challenge is funding a multi-year repositioning while navigating cost pressures, including a projected $50 million in tariffs and tighter U.S. consumer spending.
Private equity firms could view Victoria’s Secret as an undervalued asset. With a market cap of $1.5 billion and an enterprise value under $3 billion (even with a 50% premium and debt factored in), it’s an attractive target for turnaround-focused funds.
The case of Breitling offers a compelling parallel. Once criticized for outdated marketing, the Swiss watchmaker underwent a dramatic reinvention after being acquired by CVC Capital Partners in 2017. By ditching tone-deaf branding and focusing on product innovation, Breitling more than doubled its revenue and quadrupled its valuation within five years. Could Victoria’s Secret follow the same arc?
The Strategic Imperative: Reinvent or Exit
Victoria’s Secret has reportedly introduced a shareholder rights plan — a poison pill meant to prevent hostile takeovers. But that doesn’t close the door on a structured acquisition.
With the right investor, a privatized Victoria’s Secret could reset its narrative, replatform its product line, and fully embrace modern brand values without quarterly pressure. Eventually, it could re-emerge in public markets stronger, leaner, and more culturally relevant.
In a changing retail world, brands don’t just sell products — they sell belief systems. Victoria’s Secret has the history, infrastructure, and latent equity to stage a comeback. But it may take a new kind of angel — a strategic buyer — to truly bring the brand back to life.
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