L Brands has made plans to separate Bath & Body Work and Victoria’s Secret to enhance each retailer’s long-term value. Both companies will now be their own separate publicly traded entities under L Brands’ portfolio. The separation will allow Bath & Body Work and Victoria’s Secret to maximize their management focus and financial flexibility to thrive in an evolving retail environment.
“In the last ten months, we have made significant progress in the turnaround of the Victoria’s Secret business, implementing merchandise and marketing initiatives to drive top line growth, as well as executing on a series of cost reduction actions, which together have dramatically increased profitability. As a result of these efforts, Victoria’s Secret is now well-positioned to operate as a standalone, public company. Further, both Bath & Body Works and Victoria’s Secret are leaders in their respective markets, and, as separate businesses, each will be ideally positioned to benefit from a sharpened focus on pursuing growth strategies best suited to each company’s customer base and strategic objectives. With this in mind, the Board believes that this path forward will return the highest value to shareholders and that the separation will allow each business to achieve its best opportunities for growth,” said Sarah Nash, Chair of the Board.
Chair members and financial advisors are optimistic towards future growth for both brands. With Bath & Body Works and VIctoria’s Secret now operating independently, they can grow their financial standings and operate more effectively overall.
Source: L Brands Press Release
Photo Credit: CNN
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About L Brands
L Brands, through Bath & Body Works, Victoria’s Secret and PINK, is an international company. The company operates 2,681 company-operated specialty stores in the United States, Canada and Greater China, in more than 700 franchised locations worldwide and through its websites worldwide.
