L Brands intends to sell or split from Victoria’s Secret by next August, as the company is working on separating the lingerie chain from its Bath & Body Works business. Growing, in light of the rise in its share price.
The company did not explain a specific method for the separation process, but it did disclose that it was studying “all options, including converting Victoria’s Secret” into a publicly owned company or making a private sale. ” She noted that: “The timeframe set for the process in August follows the meeting of the Board of Directors with its financial advisers last January.”
“El Brands” indicated that the chief financial officer, Stuart Bergdwerfer, will retire, but will remain in order to oversee the dismissal process. The company had promoted Martin Waters, director of “Victoria’s Secret” lingerie, to take over the position of CEO, a role that Bergdewerfer had temporarily occupied.
Separating “Victoria’s Secret”, which suffers from changing consumer preferences, from “Bath and Body Works”, which in turn benefited from the huge demand for soaps and hand sanitizers during the spread of Corona, was a goal of the company for a long time. El Brands faced administrative turmoil and witnessed a transition in this regard in the midst of the pandemic.
El Brands boosted fourth-quarter earnings from $ 2.95 to $ 3 per share due to “strong January results”. And this increase comes on the previous range of the stock, which was between 2.70 to 2.80 dollars. Sales of the “El Brands” store itself are expected to increase by 10%, up by 22% for “Bath and Body Works”, and down by 3% for “Victoria’s Secret”.
Shares in “El Brands” jumped 5.6% on Thursday on the New York Stock Exchange.