Victoria’s Secret stock soars 15% in 5 days after ditching wokeness strategy

[Spartan]

Victoria’s Secret (NYSE: VSCO), the iconic lingerie brand, has experienced a substantial decline in shares and sales throughout 2023. 

 

Much of this damage can be attributed to the company’s recent strategic shift, which sought to prioritize woke and feminist-oriented initiatives. The company even made most of its board directors female as part of this strategy.

However, judging from its 2023 stock marketperformance and dwindling sales, it appears that the new approach did not yield the desired results. The company’s shares are down 45% year-to-date.

 

[Spartan]

In an interview with The Business of Fashion, Victoria’s Secret said its recent initiatives to promote inclusivity and get rid of some of its most popular supermodels attracted “favorable reviews from online critics [but] never translated into sales.”

And the numbers confirm that. The company’s projected revenue for 2023 sits at $6.2 billion, down 5% from the last year and even 2020 when the brand reported $7.5 billion in revenue. 

For that reason, Victoria’s Secret decided to go back to the basics. According to The Business of Fashion, its goal is to “improve profitability and cross back over $7 billion in annual sales.” 

To achieve this, the retailer intends to launch new activewear and swimwear collections, revamp its existing stores, and open 400 new ones outside the US. 

Investors welcome the U-turn, improved Q3 outlook

As seen earlier, Victoria’s Secret’s plummeting sales have also hurt the company’s stock price in 2023.

However, the company’s U-turn on its woke endeavors has been welcomed by investors, with the stock soaring sharply this week. 

At the time of writing, shares of Victoria’s Secret are standing at $17.91, up 3.8% on the day and more than 14.7% over the past five trading sessions. 

 

[Thokkalee]

[reality1]

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