Victoria’s Secret announce new CEO, shares increase

The CEO of Victoria’s Secret has resigned and will be replaced by John Mehas, the former president of fashion brand Tory Burch.

The parent group of the retail brand, L Brands (NYSE: LB), announced the departure of Jan Singer amid the quarterly earnings report.

Leslie Wexner, the chairman and CEO of L Brands, said: “Our number one priority is improving performance at Victoria’s Secret Lingerie and PINK. We could not be more excited for [Mehas] to lead Victoria’s Secret Lingerie to a new phase of success.”

“I am confident that, under John’s leadership, Victoria’s Secret Lingerie, the world’s leading lingerie brand, will continue to be a powerhouse and will deliver products and experiences that resonate with women around the globe,” he added.

The lingerie brand has struggled over recent years. In-store sales dropped 6% last quarter. Revenue is expected to grow by just 1% over the next five years.

The brand has been struggling to compete against newer competitors in the lingerie market.

Claire O’Connor, a lead analyst at Ibisworld, said: “These small niche operators are only going to continue growing and only going to continue to populate the industry. They have a real shot at competing with Victoria’s Secret.”

November saw the brand’s famous fashion show in New York, which reportedly costs $2 million to put on.

Shares in L Brands have fallen over 40% over the past 12 months.

They are currently trading +7.51% at 29,92 (1652GMT).

 

 

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Safiya Bashir
Safiya focuses on business and political stories for UK Investor Magazine. Her interests include international development, travel and politics.