Shares of the company that owns Victoria’s Secret are tumbling on a report that lingerie retailer is being sold for about $1.1 billion
NEW YORK —
Shares of the company that owns Victoria’s Secret are tumbling on a report that lingerie retailer is being sold for about $1.1 billion.
The selling price would signify a marked decline for a brand with hundreds of stores that booked about $7 billion in revenue last year.
But Victoria’s Secret is a diminished brand, beset by falling sales and uncomfortable questions about its billionaire founder who has run the company for five decades.
Sales at its stores are in decline because competition is increasing and tastes are changing. Victoria’s Secret suffered a 12% drop in same-store sales during the most recent holiday season.
Victoria’s Secret’s owner, L Brands, has also come under scrutiny because its CEO, Les Wexner, has ties to the late financier Jeffrey Epstein, who was indicted on sex-trafficking charges.
L Brands’ stock slid 14.6% in Thursday premarket trading.