Tuesday, May 11, 2021
High valuation expected
“Victoria’s Secret” is going public
In the course of “body shaming” debates, the lingerie label was still struggling with image problems last year. Now it seems to be going better: The parent company is hoping for a valuation in the billions from an independent IPO of the lingerie brand.
After a sale of “Victoria’s Secret” burst in the pandemic, the parent company L Brands wants to bring the lingerie label onto the stock exchange as an independent company. In this way, the separation from the daughter should bring in more money for shareholders than a sale, said L Brands. The group did not initially provide any specific information on the expected proceeds. According to a report in the “New York Times”, the company expects a valuation between five and seven billion dollars.
“Victoria’s Secret” would now be far more valuable than the sale to investor Sycamore, which failed in 2020 because of the corona crisis. Here the fashion brand was only valued at $ 1.1 billion. “Victoria’s Secret” was struggling with image and sales problems. The “Sex Sells” marketing, which focuses on flawless, scantily clad female bodies, became a stumbling block in times of “body shaming” debates and the “#MeToo” movement. There were also reports of harassment allegations against managers.
Business is now going much better again. In the first quarter of 2021, sales of “Victoria’s Secret” increased year-on-year by 74 percent to 1.6 billion dollars (1.3 billion euros). In addition, L Brands’ controversial ex-boss Leslie Wexner has since taken his hat. The 83-year-old has come under fire for his ties to US millionaire Jeffrey Epstein, who died in prison in August 2019 following an abuse scandal. L Brands’ workhorse remains the perfumery chain Bath & Body Works, which also grew faster than “Victoria’s Secret” at the beginning of the year.
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