Barington Capital Criticizes Victoria’s Secret (VSCO) Over Governance, Strategic Drift, and $2.4B Value Destruction

Barington Capital, a >1% shareholder of Victoria’s Secret, expressed concern over the company’s significant underperformance since its 2021 spin-off, with a total shareholder return of -57.2% and $2.4 billion in lost value. The letter criticizes CEO Hillary Super’s lack of relevant experience, strategic missteps, and the company’s diluted brand identity. Barington also calls out the board for poor oversight, ineffective capital allocation, and adoption of a poison pill that may entrench management and deter value-enhancing proposals. The firm urges a turnaround strategy focused on core products (especially bras), digital and international expansion, and streamlining operations. It also demands a board overhaul and removal of the poison pill to unlock the company’s latent brand value and restore shareholder confidence.