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Investing.com -- Victoria’s Secret shares are trading over 3% higher premarket on Monday after the Wall Street Journal reported that activist investor Barington Capital Group has taken a stake in the lingerie retailer.
According to the Wall Street Journal, Barington owns more than 1% of Victoria’s Secret and plans to continue building its position.
The firm reportedly believes the company hasn’t lived up to its potential since separating from Bath & Body Works (NYSE:BBWI) in 2021, when it was valued at over $6.5 billion. Its market cap has since dropped to about $1.5 billion.
Barington reportedly intends to push for significant changes, including a board overhaul and a renewed focus on Victoria’s Secret’s core bra business, said the WSJ.
The firm also believes the retailer’s beauty segment could be worth as much as the company’s current market value.
The article notes that Barington views current CEO Hillary Super and the board as lacking the necessary experience and strategic clarity to drive a turnaround.
It plans to ask the company to consider replacing a majority, or all of its board, with new independent directors, according to the WSJ.
Victoria’s Secret, already under pressure from major shareholder Brett Blundy, recently adopted a so-called poison pill to fend off takeover efforts. Barington reportedly views the measure as counterproductive and plans to urge its repeal.
A spokesperson told the WSJ that while the company had not yet heard from Barington, it looked forward to engagement and remained confident in its strategy under Super’s leadership.