Victoria’s Secret & Co. (NYSE: VSCO) today announced a new
corporate leadership structure designed to enable execution of its
strategy and fuel long-term growth goals. The streamlined
organization will unite the company’s three lines of business
(Victoria’s Secret, PINK, and Beauty) as a single, collaborative
organization, enhancing focus on the customer, and positioning
resources towards high growth, high return initiatives.
Commenting on today’s announcement, Martin
Waters, VS&Co CEO stated, “Over the last year, we have
progressed a thoughtful revolution of our business by redefining
the VS brand and rebuilding our strategy for growth. We can now
better connect with and represent our millions of customers around
the globe. As a result, we have more relevant brand positioning,
more compelling merchandise assortments, and a more inclusive
culture that celebrates our people. With our brand revolution well
underway and gaining momentum, now is the time to reimagine our
leadership structure to better align with a shifting consumer
landscape and become more efficient as an organization.”
In conjunction with today’s announcement, the
company has appointed executives to three key leadership roles
reporting to Martin. These roles are aimed at strengthening the
core of the business, enhancing the customer experience and
igniting growth.
Amy Hauk has been named CEO for Victoria’s
Secret and PINK. Amy has been CEO of PINK since 2018 after over a
decade of very successful merchandising experience at Bath and Body
Works. Under Amy’s leadership, VS&Co will integrate
merchandising, planning, marketing and creative teams to quickly
apply best practices and consumer insights, speed the company’s
test and learn agenda and better engage customers across VS and
PINK.
Christine (Chris) Rupp will join VS&Co as
Chief Customer Officer, where she will be responsible for creating
a seamless store and digital commerce business globally and will be
accountable for sales and profitability across both channels. Chris
is a transformational digital leader with 30 years in the retail
field, including deep data and ecommerce expertise. Chris joins
VS&Co from Albertsons where she is the Chief Customer and
Digital Officer and has worked since 2019, dramatically expanding
the loyal customer base and ecommerce distribution while improving
the speed and cost of delivery. Prior to that, Chris was at
Microsoft and Amazon, where she led Fulfillment by Amazon and
launched Amazon Prime Day.
Greg Unis, who has successfully led the
Victoria’s Secret and PINK Beauty businesses since 2016, has been
named Chief Growth Officer. In this new role, Greg will be
responsible for the VS&Co-Lab platform, new business
development, international expansion, as well as mergers and
acquisition opportunities. Greg will continue to lead VS&Co’s
real estate and store design and construction teams focused on
expanding the company’s store of the future initiative.
Martin continued, “Uniting our brands as a
single, collaborative organization under Amy’s leadership will
bring greater focus and discipline to our merchandising expertise
while streamlining our processes and improving our speed to market.
I firmly believe combining our store and digital channels under
Chris will move us from being a company of 'shop keepers' to being
a company of 'customer keepers'. By strengthening our core
businesses in this manner, we are freeing up time and resources to
focus on growth under Greg’s leadership.”
Today’s announcement of a simplified leadership
structure will streamline operations, collapse silos and allow the
company to optimize spend in management roles, enabling
reinvestment in growth initiatives. The simplification of the
organization has led to a reduction of about 160 management roles,
or approximately 5% of home office headcount, while providing for
reinvestment in non-leadership roles focused on executing the
company’s strategic initiatives. The net impact of these
decisions will result in an estimated $40 million cost reduction in
the run rate of the business on an annualized basis beginning in
third quarter of fiscal 2022. In conjunction with the
reorganization and reduction in leadership, the company anticipates
recording a non-GAAP charge of approximately $30 million in the
second quarter of fiscal 2022.
About Victoria’s Secret &
Co.Victoria’s Secret & Co. (NYSE: VSCO) is a specialty
retailer of modern, fashion-inspired collections including
signature bras, panties, lingerie, casual sleepwear, athleisure and
swim, as well as award-winning prestige fragrances and body care.
VS&Co is comprised of market leading brands, Victoria’s Secret
and Victoria’s Secret PINK, that share a common purpose of
inspiring and uplifting our customers in every stage of their
lives. We are committed to empowering our more than 30,000
associates across a global footprint of over 1,350 retail stores in
more than 70 countries. We provide our customers with products and
experiences that make them feel good inside and out while driving
positive change through the power of our products, platform and
advocacy.
Safe Harbor Statement Under the Private
Securities Litigation Reform Act of 1995
We caution that any forward-looking statements
(as such term is defined in the U.S. Private Securities Litigation
Reform Act of 1995) contained in this press release or made by us,
our management, or our spokespeople involve risks and uncertainties
and are subject to change based on various factors, many of which
are beyond our control. Accordingly, our future performance and
financial results may differ materially from those expressed or
implied in any such forward-looking statements. Forward-looking
statements include, without limitation, statements regarding our
future operating results, the implementation and impact of our
strategic plans, and our ability to meet environmental, social, and
governance goals. Words such as “estimate,” “commit,” “target,”
“goal,” “project,” “plan,” “believe,” “seek,” “strive,” “expect,”
“anticipate,” “intend,” “potential” and any similar expressions may
identify forward-looking statements. Risks associated with the
following factors, among others, could affect our financial
performance and cause actual results to differ materially from
those expressed or implied in any forward-looking statements:
- the spin-off from Bath & Body Works, Inc. (f/k/a L Brands,
Inc.) may not be tax-free for U.S. federal income tax
purposes;
- a loss of synergies from separating the businesses that could
negatively impact our balance sheet, profit margins or
earnings;
- we may not realize all of the expected benefits of the
spin-off;
- general economic conditions, inflation, consumer confidence,
consumer spending patterns and market disruptions, including
pandemics or significant health hazards, severe weather conditions,
natural disasters, terrorist activities, financial crises,
political crises or other major events, or the prospect of these
events;
- the novel coronavirus (COVID-19) global pandemic has had and
may continue to have an adverse effect on our business and results
of operations;
- the seasonality of our business;
- difficulties arising from turnover in company leadership or
other key positions;
- our ability to attract, develop and retain qualified associates
and manage labor-related costs;
- our dependence on mall traffic and the availability of suitable
store locations on appropriate terms;
- our ability to grow through new store openings and existing
store remodels;
- our ability to successfully operate and expand internationally
and related risks;
- our independent franchise, license, wholesale, and joint
venture partners;
- our direct channel business;
- our ability to protect our reputation and the image of our
brands;
- our ability to attract customers with marketing, advertising
and promotional programs;
- our ability to maintain, enforce and protect our trade names,
trademarks and patents;
- the highly competitive nature of the retail industry and the
segments in which we operate;
- consumer acceptance of our products and our ability to manage
the life cycle of our brands, keep up with fashion trends, develop
new merchandise and launch new product lines successfully;
- our ability to source, distribute and sell goods and materials
on a global basis, including risks related to:
- political instability, environmental hazards or natural
disasters;
- significant health hazards or pandemics, which could result in
closed factories, reduced workforces, scarcity of raw materials,
and scrutiny or embargoing of goods produced in impacted
areas;
- duties, taxes and other charges;
- legal and regulatory matters;
- volatility in currency exchange rates;
- local business practices and political issues;
- delays or disruptions in shipping and transportation and
related pricing impacts;
- disruption due to labor disputes; and
- changing expectations regarding product safety due to new
legislation;
- our geographic concentration of vendor and distribution
facilities in central Ohio and Southeast Asia;
- the ability of our vendors to deliver products in a timely
manner, meet quality standards and comply with applicable laws and
regulations;
- fluctuations in freight, product input and energy costs,
including those caused by inflation;
- our ability to adequately protect our assets from loss and
theft;
- claims arising from our self-insurance;
- our and our third-party service providers’ ability to implement
and maintain information technology systems and to protect
associated data and system availability;
- our ability to maintain the security of customer, associate,
third-party and company information;
- stock price volatility;
- shareholder activism matters;
- our ability to maintain our credit rating;
- our ability to service or refinance our debt and maintain
compliance with our restrictive covenants;
- our ability to comply with laws, regulations and technology
platform rules or other obligations related to data privacy and
security;
- our ability to comply with regulatory requirements;
- legal and compliance matters; and
- tax, trade and other regulatory matters.
Except as may be required by law, we assume no
obligation and do not intend to make publicly available any update
or other revisions to any of the forward-looking statements
contained in this press release to reflect circumstances existing
after the date of this press release or to reflect the occurrence
of future events, even if experience or future events make it clear
that any expected results expressed or implied by those
forward-looking statements will not be realized. More information
on potential factors that could affect our results is included in
“Item 1A. Risk Factors” in our Annual Report on Form 10-K filed
with the Securities and Exchange Commission on March 18, 2022.
For further information, please contact:
VS&Co Media RelationsBrooke
WilsonCommunications@victoria.com
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