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Shares of Victoria’s Secret & Co. surged earlier this week following news of the appointment of Hillary Super, most recently CEO of competitor Savage X Fenty, as CEO to guide the next stage of the lingerie chain’s turnaround efforts.
The 30-year retail veteran started her career in Mervyns’ executive training program in 1994. Super went on to merchandise and operational roles at Wet Seal, Old Navy, Ann Taylor, American Eagle Outfitters, Guess, and Maris Collective before earning credit for leading the turnaround of the women's apparel and accessories business at Anthropologie as co-president and eventually global CEO.
She joined Fenty in June 2023, replacing pop star and founder Rihanna. At Fenty, she’s credited with launching a new collection, "Soft N' Savage" with a more muted and toned-down color palette, representing a shift to more subtle and wearable styles versus its traditional loud statement pieces.
“We believe now is the right time to take the next step on our journey with new merchant-operator leadership to fully capitalize on the opportunities ahead for VS&Co.,” said Victoria’s Secret’s chair of the board, Donna James, in a statement shared in the company’s press release.
She added, “We are particularly impressed with her merchant leadership capabilities paired with an operator’s discipline and bias for driving value creation. She understands vertically integrated retail brands and has an intuitive understanding of the consumer landscape, informed by customer insights which are critical for consistently delivering in this industry and its ever-accelerating fashion and economic cycles.”
Super said, “I am excited to join VS&Co, the market leader in the domestic intimates category. The strength of these iconic brands, supplemented by an incredible beauty business, provides numerous opportunities for future growth.”
She succeeds Martin Waters, who became CEO in 2021 over a year after the chain canceled its famed The Victoria’s Secret Fashion Show amid criticism over the chain’s oversexualized imagery at the height of the #MeToo movement.
Waters was credited with “building an inclusive culture,” including adding more inclusive sizing and diverse models. Waters also expanded the chain’s digital capabilities, repositioned the international business for growth, and spearheaded the chain’s spinoff in 2021 from L Brands, which also included Bath & Body Works. Waters formerly led from L Brands’ international unit.
Other aspects of the chain’s turnaround efforts include emphasizing newness; expanding swim, sport, and apparel offerings; revamping its loyalty program; bringing back the Victoria's Secret Fashion Show; and cost-cutting.
While announcing the CEO change, Victoria’s Secret raised its second-quarter outlook, marking the fourth consecutive quarter of sequential improvement in quarterly sales in North America.
Net sales are expected to decline in the range of 1% to 2% in the quarter rather than 1% to 3%. Same-store sales fell 9% in 2023 and 8% in 2022.
Beyond facing newer competition from Aerie, Fenty, and Kim Kardashian’s SKIMS, Victoria’s Secret has recently faced general softness in the intimates category due to a pullback in discretionary spending.
Several analysts upgraded the stock due to optimism about the new CEO hire.
Jonna Kim, at TD Securities, said in a note, “Our view is that Victoria’s Secret and Pink have high awareness that can be leveraged with the right merchandise strategy and execution to create higher cultural relevance and customer following.”
Wells Fargo’s Ike Boruchow said in a note that Victoria’s Secret “has recently begun showing some signs of stabilization and this could be the ideal time for the baton to be handed off to the next leader, who can help the brand rebuild its reputation among consumers.”
Morgan Stanley analyst Alex Straton upgraded the stock to “equal-weight” but held off on recommending purchasing shares due to ongoing brand relevance hurdles, competitive pressures, and limited retail turnaround precedents. He wrote in a note, “These dynamics continue to keep us skeptical on VSCO’s longer-term transformation potential.”